Federal Reserve's significant rate cut leads to winners emerging in the ETF industry - favoring corporate bonds, residential construction, and regional banks.

September 20, 2024 8:45 JST (partially excerpted)
iShares 10+ Year Investment Grade Corporate Bond ETF Sees Largest Inflow Since October 2020
Investors tend to aim for high yields before a further decline in interest rates.
Following the substantial rate cut announced by the US Federal Reserve this week, there was a significant inflow of funds into listed exchange-traded funds (ETFs) in the areas of corporate bonds, residential construction, and regional banks. Corporate bonds are susceptible to interest rate fluctuations.
According to Bloomberg's data, the iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB) with assets under management of approximately 3 billion dollars (about 430 billion yen) saw an inflow of 134 million dollars on the 18th. This marked the largest single-day inflow since October 2020. Over the past year, there has been a net inflow of over 600 million dollars.