Fed Rate Hike Carnage Kills 62 ETFs Worth $7 Trillion In 2023: High Quality, Low Vol And Bond ETFs Won

Sixty-two exchange-traded funds (ETFs) with a total AUM of approximately $7 trillion have ceased activity thus far in 2023, amidst increased market volatility and uncertainty regarding Fed rate hikes, Bloomberg reported on Monday, April 17.

The rate of failures in the first four and a half months of the year has been more than double that of the same time in 2022 when just 26 had ceased by mid-April.

Nate Geraci, president of The ETF Store, an advisory firm, stated a number of the closed ETFs were victims of poor market timing, as they were launched toward the tail end of the post-COVID-19 pandemic rally.

Read Also: VanEck Gold Miners ETF (GDX) Skyrockets To 11-Month Highs: A Stunning 25% YTD Surge As Precious Metals Dazzle

Top Five ETF By Inflows In 2023: The top 10 ETFs by inflows in 2023, according to ETFdb.com, include three equity-related ETFs and two Treasury ETFs. 

Investors have thus far favored a defensive approach by investing in ETFs that monitor high-quality equities, low volatility, the broad equity market, and medium-to-long duration Treasury.

The Vanguard 500 Index Fund ETF (NYSE:VOO), which tracks the S&P 500 index, is third year-to-date by inflows. 

The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) had the biggest inflows among bond ETFs, and ranked fourth in the overall ranking. The fund invests in U.S. Treasury securities with more than 20 years of remaining maturity. 

Read Also: Best Exchange Traded Funds (ETFs)

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