Sept 29 (Reuters) – Investors continued piling into exchange-traded funds (ETFs) that track U.S. government debt in the third quarter, with retail investor flows hitting their highest level since the pandemic on bets that the Federal Reserve is done hiking rates.
Daily retail investor flows into the benchmark iShares 20+ Year Treasury Bond ETF (TLT.O) touched their highest level last week since March 2020, according to data from Vanda Research.
The fund saw net retail inflows rise to $1.2 billion so far this quarter, Vanda’s data showed, even as prices slid to their lowest level since 2010 amid a sharp rise in yields. The ETF saw retail net inflows of nearly $746 million in the second quarter.
“With rates getting close to their expected peak, many investors are starting to take on more duration knowing that when rates do fall, they will see price appreciation in fixed income,” said Noel…
