iShares Broad USD Investment Grade Corporate Bond ETF Price & Performance (USIG)

Amid market volatility, gold and tech ETFs have seen increased demand. SPDR Gold Shares attracted $674 million, reflecting its safe-haven appeal, while ProShares UltraPro QQQ gained $309 million as traders eyed tech opportunities. Meanwhile, iShares Core S&P 500 ETF faced significant outflows of $4.8 billion, signaling a shift in investor sentiment.1

The Russell 2000 index has dropped 17% from its peak, suggesting a 52% probability of recession. However, credit markets are less alarmed, with high-grade corporate bonds pricing only a 12% chance. This divergence raises questions about whether current recession fears are overblown or worth deeper scrutiny.2

Fixed income ETFs, including SPDR Bloomberg 1-3 Month T-Bill ETF and iShares 0-3 Month Treasury Bond ETF, attracted billions this March, reflecting investor caution. Despite this, equity ETFs recovered, pulling in $22 billion for the month. The trend highlights a mixed investor sentiment amid economic concerns and market volatility.3