ETF Trends
ETF Trends

The boom in bond yields for June was a blessing for the new fixed-income exchange traded funds (ETFs). ETF-focused bonds acquired $1.03 billion in assets, bringing the total to $25 billion, reports Lawrence Carrel for TheStreet.com. This was the largest percentage increase for ETFs besides international focused funds. Yields rose above 5% on inflation fears and concern U.S. Treasuries aren’t appealing to foreign investors.

iShares Lehman 20+Year Treasury Bond Fund (TLT) average daily volume rose sixfold to 3 million shares per day, however it is down 2.8% year-to-date. iShares Lehman 7-10 Year Treasury Bond Fund (IEF) had an increase in volume of 82%.  IEF is down 0.3% for the year.  The volume for iShares Lehman U.S. TIPS Bond Fund (TIP) increased 39% and it is up 1.3%.

These relatively new funds aren’t widely used by investors yet. They make up 10% of the total $500 billion ETF market, reports Michael Pollock for The Wall Street Journal. Enthusiasts of the bond fund market like the transparency allowed for the fixed-income products.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.