In a sign that regular investors burned by the credit crisis are finally ready to embrace this stock market rally, bond exchange-traded funds recorded their first outflow since the equity bull market began in March of 2009.
The ETFs, which track Treasury, municipal and corporate bonds, posted a net outflow of $501 million in November, their first outflow since way back in October 2008, according to Birinyi Associates.
Investors pulled the most money from ETFs that invest in government bonds, such as the iShares Barclays 20+ Year Treasury Fund and the iShares Barclays 7-10 Year Treasury Fund , according to the Birinyi data.
Still rattled by the wealth-destroying collapse of Lehman Brothers, befuddled by a decade for equities that provided zero return, and worried about their employment prospects, regular investors refused to jump into this equity rally headfirst and opted for the low return safety of bonds.
The S&P 500 is up more than 80 percent from its 12 ½ year low hit during the nadir of the credit crisis on March 9, 2009, yet investors continued to pile more money into bond ETFs, mutual funds and individual bond issues.Page 1 of 3 | Next Page