Investors Add Cash to Short-Dated Bond ETFs

Sam Potter

April 6, 2021

Investors boosted the amount of cash they put in exchange-traded funds tracking ultra-short and short-duration bonds in March.

With inflationary worries accompanying rising expectations for an economic rebound, traders added more than $1.2 billion to ultra-short ETFs, according to data compiled by Bloomberg. That was the biggest inflow in a year. They plowed about $5.4 billion, the most in 10 months, into short-dated products.

The same concerns about price growth kept money flowing to ETFs investing in inflation-protected bonds. They attracted $1.9 billion in the 11th consecutive month of inflows, the data show. Meanwhile, convertible bond ETFs were the only segment to post an outflow in March, erasing all their new assets for the year as $361 million exited.