Bonds to ETFs

Posted by Samuel A. Kiburz on Nov 28, 2022 12:09:52 PM

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chart explains how bond ETFs are absorbing cash amid record exodus from mutual funds, years shown 2013 - 2022

We often talk about how over the last 10+ years investors have, in general, been moving out of mutual funds and into Exchange Traded Funds, also known as ETFs. However, this year the pattern is even more prevalent with bonds. So far this year, a record $446 billion exited bond mutual funds and went into bond ETFs and bank accounts.

Why do we use bond ETFs instead of actively managed bond mutual funds? Bond ETFs have substantially lower costs, more liquidity, increased transparency, and over the last 10 years had a better return than 90% of actively managed mutual funds.

Topics: Chart of the Day