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Fixed Income ETFs Attract $10.4B April Inflows 

April 13, 2018

ETF Trends, Matthew Bartolini

"Fixed Income ETFs have attracted over $10.4 billion of inflows in April as of Thursday’s close—significantly outpacing their equity counterparts, which have seen inflows of just $1.3 billion to start the second quarter.

There is elevated macro risk as result of the ongoing trade rhetoric and the questions that creates. Particularly, how that impacts the trajectory of the global economy as well as how the Federal Reserve may conduct monetary policy in the future, this is evident in the Fed’s latest meeting minutes where trade and fiscal issues garnered more attention than in the past.

In this type of environment where equity implied volatility (VIX) is in the 86th percentile over the past year, investors have sought out to buffer equity risk in their portfolios. This has led to over $10 billion of inflows into Fixed Income ETFs to just $1 billion in equities."

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