 "Billions are flowing to cash-like ETFs in 'hunt' before Fed hike")
As investors brace for an increasingly aggressive US Federal Reserve (Fed), money is flooding into cash-like exchange-traded funds (ETFs) - which are seen as relatively less vulnerable to interest-rate risk.
Traders have been piling into ETFs mostly focused on ultra-short instruments like treasury bills, while offloading ETFs tracking longer-dated debt - even those that are considered short-term bonds maturing in five years or less.
The $14-billion PIMCO Enhanced Short Maturity Active ETF (ticker MINT) lured inflows of nearly $900 million in the best week since it started trading in 2009, according to the data compiled by Bloomberg.
Meantime, roughly $1.6 billion was pulled from the $39 billion Vanguard Short-Term Bond ETF (BSV) - the biggest withdrawal in three years.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%