Is the Bond Market Poised For Takeoff In The Second Half? US Aggregate Bond ETF Sees Record Inflows
Portfolio Pulse from Piero Cingari
Despite a lackluster performance in 2023, the bond market is seeing significant investor inflows, particularly into bond-related ETFs. The iShares Core U.S. Aggregate Bond ETF (AGG) has seen inflows of $5.4 billion in Q2 2023, matching its best quarter ever in Q2 2020. However, the U.S. corporate investment-grade market has been negative in 2023, down 0.4% year-to-date. The S&P 500 Index, tracked by the SPDR S&P 500 ETF Trust (SPY), has outperformed the bond market, gaining 27.6% compared to the bond market's 4.5%.

July 05, 2023 | 3:50 pm
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POSITIVE IMPACT
The iShares Core U.S. Aggregate Bond ETF (AGG) has seen significant inflows of $5.4 billion in Q2 2023, matching its best quarter ever in Q2 2020.
The significant inflows into AGG indicate investor confidence in the bond market despite its lackluster performance in 2023. This could potentially lead to a positive short-term impact on AGG.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The S&P 500 Index, tracked by the SPDR S&P 500 ETF Trust (SPY), has outperformed the bond market, gaining 27.6% compared to the bond market's 4.5%.
The strong performance of SPY indicates that investors are favoring equities over bonds in 2023. This could potentially lead to a positive short-term impact on SPY.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 80