iShares Aaa - A Rated Corporate Bond ETF Price & Performance (QLTA)

Investor sentiment has shifted dramatically in early 2025, with key indicators like the Fear & Greed Index hitting "Extreme Fear" levels and the VIX spiking nearly 20% in February. Concerns over market volatility are compounded by Warren Buffett's cautious moves, as Berkshire Hathaway holds a record $334 billion in cash.1

Amid economic volatility, bond ETFs like the Vanguard Short-Term Inflation-Protected Securities ETF and JPMorgan Ultra-Short Income ETF have seen significant inflows. Investors are turning to these funds for stability, with the latter adding $1.3 billion in assets last week alone. Short-term bonds are increasingly viewed as safe havens.23

As economic uncertainty grows, defensive ETFs are gaining traction. Funds focusing on low-beta equities and high-quality bonds, such as the iShares Aaa - A Rated Corporate Bond ETF, are attracting investors. These ETFs offer a hedge against volatility, providing stability through sectors like healthcare and consumer staples.14