Trading data shows that retail investors are focused on funds that generate income and are relatively insulated from the moves in interest rates, the firm said in a note on Thursday.
"As bond prices continue to drop we've seen a surge in Treasury ETF purchases from the retail community over the past week.
Vanda also pointed out that gold stocks and ETFs have also been climbing in September, another sign of a defensive mindset for investors.
Investors have been buying stocks, too, but in the form of broad market ETFs such as the SPDR S & P 500 Trust (SPY) rather than individual stocks, according to Vanda.
"When the stock market is performing poorly, retail investors tend to favor these products because the equity market tends to rise in the long term, and as a result, the retracement offers a 'safe' upside potential.
Persons:
Vanda, peters
Organizations:
Vanda Research, Market, Investors, Treasury