Investors Feasted on Fixed Income ETFs in April

Long-term bond ETFs with maturities above 10 years, however, also attracted inflows, of $1.7 billion despite rising rates and the 10-Year Treasury yield breaking above 3% in late April (before retreating slightly).

"This may point to investors believing that the 3% breakthrough may not hold," wrote Matthew Bartolini, head of SPDR Americas Research at State Street in the April report.

(Related: Readying for Higher Interest Rates)

Even high-yield bond ETFs saw inflows in April, breaking a record-setting five months of outflows. Preferred debt and emerging market bonds were the only fixed income categories with outflows in April, and preferred and high-yield debt were the only two debt categories posting outflows year to date. 

Among equity ETFs, large-cap ETFs attracted the biggest inflows in April —  $5.65 billion versus $1.7 billion into small caps — but not enough to offset outflows in previous months, which in total are down $237 billion. Flows into U.S. stock ETFs were substantially higher than flows into international ETFs in developed markets ($3.4 billion) and emerging markets ($2.6 billion).

Despite the popularity of fixed income ETFs in April and outflows from equity ETFs earlier this year, year-to-date data show that equity inflows, at $56.9 billion, were almost twice as much as fixed income ETF inflows, at $31.6 billion.

— Check out Investors Favor Bond ETFs Over Stock ETFs for 3rd Straight Month on ThinkAdvisor.