Investors retreat into bond ETFs as trade war fears weigh

US large cap ETFs see outflows

Tom Eckett
clock • 1 min read

Developed investment grade and developed government bond ETFs saw the most inflows across all asset classes last month, as fears of a full blown trade war between the US and China spooked investors.

According to data from TrackInsight, developed investment grade bond ETFs saw the highest flows with €9bn in June while developed investment grade bonds saw €6bn inflows, as investors fled into safe haven assets. In the latest trade war saga, the European Commission threatened retaliation on $300bn of US products "across sectors of the US economy" if President Donald Trump went ahead with his tariffs on the car industry amid his claims the European Union was "as bad" as China. Furthermore, the Chinese government last month also vowed retaliation in response to Trump's $200bn trade tar...

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