Investors are taking a shine to bond exchange traded funds, throwing $100 billion into the asset class over the first three quarters of the year.
Total global ETF assets under management have reached $3.4 trillion at the end of September, compared to $3 trillion at the end of 2015, reports Thomas Hale for the Financial Times.
However, only $612 billion is invested in fixed-income ETFs, but it is still a significant 24% gain since the end of last year when $495 billion was invested.
In the U.S., where there are 1,933-listed exchange traded products with close to $2.4 trillion in assets under management, 297 U.S.-listed bond ETFs only make up $427.1 billion of the industry, according to XTF data.
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The growth in fixed-income ETFs reflect an ongoing trend in investors’ habits as more gradually turn to new ways to gain exposure to the debt markets as traditional forms of trading lose traction, concerns over liquidity rise and low yields depress returns.