ETF Investors Chase Higher Yields as Bonds Sell Off

Investors added $27.2 billion to US-listed ETFs last week, with international equity and US bond funds leading the inflows. This occurred against a backdrop of a firmer stock market and a softer bond market, with the 10-year Treasury yield reaching its highest level since January 2025. ETF investors viewed these higher yields as a buying opportunity, with significant flows into short-term Treasury ETFs and other sectors like semiconductors and Bitcoin.