Moreover, concerns over liquidity in the primary markets have also pushed large investors to the far more liquid bond-related ETFs as an easy option to quickly move in and out of fixed-income exposure.
“What you are witnessing in quick shifting markets, at times when asset allocation, portfolio construction and the ability to pivot quickly from view to view… is the ETF becoming the utility investors simply can’t live without,” Martin Small, head of BlackRock’s US iShares, told the Financial Times.
SEE MORE: U.S. Corporate Bond ETFs Among Few Attractive Investment-Grade Options Left
Meanwhile, global equity ETFs have experienced an 85% decline in inflows this year, attracting $15 billion according to ETFGI data, which reflects the growing interest for fixed-income assets in a period of heightened market volatility and aggressive global central bank policies.
For more information on the Bond ETFs market, visit our bond ETFs category.