EM Bond, Treasury ETFs Top April Flows

April 30, 2014

U.S. Treasury ETFs Second-Most-Popular

Investors poured $2.155 billion into U.S. fixed-income ETFs in April, pushing total net inflows into the asset class to more than $12.9 billion year-to-date.

In the past month, no segment was more popular in U.S. bonds than long-dated U.S. Treasury ETFs, which raked in a net of $437 million in net new assets in the period, according to data compiled by ETF.com.

The iShares 20+ Year Treasury Bond ETF (TLT | A-76) attracted net asset inflows of $426 million in April. The $3.75 billion fund has now seen total net creations of $1.44 billion year-to-date. TLT has an effective duration of about 17 years, for a 30-day yield of 3.4 percent.

Similarly, the $232 million Vanguard Extended Duration Treasury ETF (EDV | C-39) saw net inflows of $34.5 million in the past month. So far this year, investors have poured nearly $100 million into the fund.

These flows have come hand-in-hand with a rally that has now pushed TLT up roughly 9.5 percent year-to-date. EDV has seen total returns of 15 percent since the beginning of the year.

On the flip side, U.S. government TIPS ETFs were the least popular fixed-income segment in April, facing net redemptions of roughly $430 million.

The biggest ETF in the 13-funds segment is the iShares TIPS Bond ETF (TIP | A-99), with $12.4 billion in total assets. TIP alone faced net redemptions of nearly $435 million in the past month.

TLT_EDV_TIP_YTD_Perf

Charts courtesy of StockCharts.com

 

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