The recent jump in market interest rates may have caught some ETF investors off guard, and they are now shifting back into short-term bond funds that can better withstand rising yields.
Bond yields move in the opposite direction of price, and long-term bonds see their prices hit harder when rates rise.
As a result, investors are shifting into short-term bond funds.
The following short-term bond ETFs were in the top 10 for net inflows over the past week, according to FactSet.
The upward move for bond yields has been particularly acute in the long end of the yield curve.
Persons:
Claudio Irigoyen, Fitch, Irigoyen, TLT
Organizations:
Federal, Treasury, Treasury Bond ETF, Bloomberg, Bank of America
Locations:
U.S, Japan