The Federal Reserve maintaining its near zero interest rate policy is helping with the theme of September being a banner for bond ETFs, but even before the Fed confirmed rates will remain where they are until at least October, possibly longer, investors were piling into fixed income exchange traded funds.
“Treasury ETFs took in $3.9 billion in the first two weeks of the month with most money coming the first week of the month on the heels of the steep selloff in late August. Investors showed no concern over interest rate risk as they used a variety of maturities to hide out in,” according to Bloomberg's mid-September ETF Review.
Led by the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE: LQD), the largest corporate bond ETF, five of the top 10 asset-gathering ETFs on a month-to-date basis are fixed income funds. To this point in September, LQD has hauled in over $1.1 billion in new assets.
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