Published on 18 May 2023 on ETF Trends via Yahoo Finance

Chart of the Week: Investment-Grade Bond ETFs Appeal to Advisors

This article was originally published on ETFTrends.com.

Even with uncertainty about whether the Federal Reserve will soon pause its rate hiking program, bond ETFs are in demand. Individual Treasury ETFs have the strongest net inflows, according to VettaFi LOGICLY data. Yet, advisors told VettaFi that they are looking to take on moderately more credit risk, according to our recent advisor survey. 

VettaFi asked: “Which fixed income style do you find appealing in the current environment?” in mid-May. Half of the respondents chose investment-grade corporate bonds, while 25% and 14% selected core/aggregate and ultra-short styles, respectively. Even given the option to select all that applied, only 7% and 4% of advisors chose high yield corporate or emerging market debt as being appealing.