Sunday, 23 April 2023 06:06

ETFS reeling in the cash

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Last month, investors must have spent more than a little time at their neighborhood ATM. After all, during that period, they poured $62.1 billion into ETFs, according to zacks.com.

 

That’s setting some pace, at that, considering it’s almost tripled February inflows, according to the BlackRock report. The first quarter net inflows as a result: $148.5 billion.

 

Fixed income ETFs fueled most of the inflows. Marking the largest gain since October, it hauled in approximately $38 billion.

 

Meantime, the Innovator, an outcome-based ETF issuer, recently was more than a little busy. It launched a unique suite of barrier ETFs that extends protection by scooping up U.S. Treasurys and selling equity options, according to cnbc.com.

“Advisors are realizing that bonds aren’t the safe haven that many thought they would be,” the firm’s CIO, Graham Day, told CNBC’s “ETF Edge.”  “If you can pair [a barrier ETF] with the fixed income, it offers a tremendous amount of diversification benefits.”

And talk about two birds with one stone. These ETFs nip credit risk in the bud and yield liquidity every day, Day explained.

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