Fixed income ETFs see jump in flows in April on fears of further downturn

Combined inflows of €17.8bn

Developed investment grade and developed government bond ETFs posted combined net inflows of €17.8bn last month despite concerns of rising inflation and the tightening of monetary policy across a number of markets.

According to data from TrackInsight, developed investment grade bond ETFs captured the most inflows across all asset classes with €11.1bn, while developed government bond ETFs were second with €6.7bn. The positive flows reflected some investors' concerns about risk assets following an increase in volatility last month with 10-year Treasury yields passing the 3% barrier for the first time in over four years and US President Donald Trump locked horns with China by implementing tariffs on $50bn of imports. Less than 24 hours later, China, in response, announced tariffs on 106 US products...