New trend on the ETF market – demand for bond index funds is increasing sharply

Frankfurt It is a remarkable trend movement: In Europe, there is not only a higher demand for exchange-traded index funds than in the previous year. Interest is also shifting towards bond products in ETFs and towards emerging markets in the equity sector. This is shown by current data from the French asset management company Amundi.

According to the overview, investors acquired ETFs for a net amount of 66.7 billion euros in the first half of the year. For comparison: For the whole of 2022, the corresponding value was only 82.0 billion euros. However, it must be taken into account that the past year was characterized by heavy losses on the securities markets.

Investors once again concentrated much more strongly on bond ETFs – which can be seen from the volume of inflows, which totaled 32.6 billion euros. That is already more than in the whole of 2022. This is due to massive interest rate increases. In the US, the world’s leading market, yields on ten-year government bonds jumped from 0.5 percent to over four percent at times.

government securities for protection