U.S. Treasury bond ETFs draw net inflows this year despite recent market rout

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Bruce Cockburn: 50 years of music, spirituality and social justice | SaltWire - Investors have poured money into exchange traded funds focused on the US bond market this year, despite a historic sell-off in global bonds and uncertainty over when prices will rebound.

"A lot of institutions, pension funds and family offices have long-term targets that require them to have a certain percentage invested in fixed income," says Bob Tull, co-founder and president of ProcureAM, an asset manager specializing in exchange-traded products."The easiest way to do this is by using ETFs."

But many investors find it easier to meet their fixed income allocation targets through Treasury-focused ETFs, rather than buying the underlying U.S. government bonds or other fixed income instruments.Bond ETFs are also benefiting from the long-term trend of investors diverting cash from traditional mutual funds into the ETF market, lured by their lower fees and strong liquidity.

 

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U.S. Treasury bond ETFs draw net inflows this year despite recent market routInvestors have poured money into exchange traded funds (ETFs) focused on the US bond market this year, despite a historic sell-off in global bonds and...
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