Bond ETF assets climb to record as investors seek out liquidity
From: financial-planning.com
(Bloomberg) — Holdings in bond ETFs climbed to records in the U.S. and Europe, spurred by ease of trading and the lure of higher yields in emerging markets.
Bond ETFs now manage $428 billion in the U.S. and $150 billion in Europe, according to BlackRock. The iShares Core U.S. Aggregate Bond ETF also became the first fixed-income ETF to surpass $40 billion in assets, the New York-based investment company said.
Globally, bond ETFs have had the fastest growth since 2012, with $99.7 billion of inflows, helped by record emerging-market investments and central-bank purchases driving up bond demand in Europe.
The funds, which track debt indexes and trade like stocks, have also gained popularity as investors seek liquid investments amid a slowdown in bond-market trading.
