What a difference a day (or an election) makes.
Headed into the presidential election, we saw bond ETF investors flock to riskier, higher income sectors of the market such as high yield and emerging markets. But investor sentiment and flows quickly shifted after the election.
We are seeing investors position their portfolios for the possibility of higher taxes, as well as the potential for a fiscal drag stemming from either a delay in a resolution to the fiscal cliff, or from the cliff remedies themselves. [Muni Bond ETFs Solid on Tax Fears]
Take a look at the flows we saw in the following iShares funds from November 7 – November 13. [Bond ETFs: Investors Favoring Investment-Grade Over High-Yield]