Investors Seek Intermediate Bond ETFs as Fears of Rising Rates Subside
- IEF, ITE took in more than $2.7 billion of assets this week
- Market sees a greater chance of a coming rate cut than hike
This article is for subscribers only.
As investors lower their expectations for further rate hikes, exchange-traded fund buyers are placing big bets on intermediate bond funds.
The $12 billion iShares 7-10 Year Treasury Bond ETF, ticker IEF, took in almost $1.7 billion of assets on Wednesday, the most in a single day since 2014, and more than $1.9 billion has poured in this week. Similarly, the $1.4 billion SPDR Bloomberg Barclays Intermediate Term Treasury ETF, known as ITE, had a record inflow of $719 million on Wednesday.