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Investors add $38B to long-bond ETFs as yields hit 19-year highs
Inflows boosted long-dated Treasuries via TLT, while shorter-duration IEF saw about $4B in outflows, underscoring a maturity split in demand.
Investors increased allocations to US-listed ETFs during the week ending Aug. 14, adding more than $38 billion, lifting year-to-date inflows to around $1.3 trillion, according to Yahoo Finance data. US equity ETFs accounted for roughly half of the total inflow at about $20 billion, while US fixed income attracted about $7 billion and international equity ETFs added about $6.5 billion.
At the fund level, the Invesco QQQ Trust (QQQ) led inflows with $5.6 billion, followed by the iShares 20+ Year Treasury Bond ETF (TLT) with $5.3 billion. Despite continued selling in long-dated Treasuries, some investors treated the weakness as an opportunity to buy, even as the 30-year yield recently touched a 19-year high above 5.3%.
TLT was down about 2.4% this year on a total-return basis, but it drew substantial new money, while the iShares 7-10 Year Treasury Bond ETF (IEF) saw outflows of about $4 billion, the largest among the week’s funds. The article also points to a maturity divergence, with the 30-year yield setting fresh multiyear highs while the 10-year yield last traded around 4.7%, below its 2023 peak.
Semiconductors also appeared on the outflow list, with the iShares Semiconductor ETF (SOXX) and the Direxion Daily Semiconductor Bull 3X Shares (SOXL) among the top redemptions. Yahoo Finance notes the data is as of 6 a.m. Eastern time on the publication date.