ETF Buyers Keeping the Faith

Despite tensions in Ukraine, investors in ETFs are chasing yields on equities and lower-rated bonds.

Investors are demonstrating confidence in the world’s biggest economy by pouring cash back into risky assets and out of government securities as the Federal Reserve slows stimulus.

Yesterday BlackRock Inc.’s $13.7 billion exchange-traded fund (ETF) that focuses on junk bonds reported its biggest daily deposit since October, helping boost the total volume flowing into the biggest high-yield debt ETFs by $2 billion in the past month, according to data compiled by Bloomberg. Investors funneled $1.9 billion yesterday into U.S. stocks, which have recovered from a 3.5 percent loss in January.

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