ETF Trends
ETF Trends

Exchange traded funds that track U.S. Treasuries have attracted inflows for 10 consecutive weeks, the longest period in almost five years, as global volatility and economic uncertainty fueled safe-haven demand.

According to Lipper data, U.S. Treasury funds attracted $1.6 billion in net inflows for the week ended February 17, bringing the net inflows this year to $12.4 billion, reports Min Zeng for the Wall Street Journal.

To put this in perspective, funds that track U.S. Treasuries brought in $16.1 billion for the whole of 2015.

Demand for U.S. Treasuries continues unabated. Over the past week, four Treasuries-related ETFs were among the top ten investment picks. The iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) attracted $444.9 million in net inflows, iShares 3-7 Year Treasury Bond ETF (NYSEArca: IEI) saw $326.9 million in inflows, iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF) experienced $275.3 million in inflows and iShares TIPS Bond ETF (NYSEArca: TIP) added $256.5 million in new assets, according to ETF.com.

TIP, which tracks a group of U.S.Treasury inflation-protected securities, saw increased interest as inflationary pressures tick higher. The Labor Department revealed that its Consumer Price Index, excluding volatile food and energy prices, rose 0.3% last month, the largest monthly gain since August 2011, as rising rents and healthcare costs lifted underlying U.S. inflation, reports Lucia Mutikani for Reuters.

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