Vanguard Core Bond ETF Price & Performance (VCRB)

The JPMorgan Ultra-Short Income ETF (JPST) recorded outflows of $318.2 million as investors moved away from corporate debt. This trend coincides with the S&P 500 entering correction territory, falling 10.1% from its February peak. Other corporate bond ETFs, including Vanguard's VCSH and iShares' LQD, also saw significant outflows.12

Investors are increasingly turning to defensive strategies as market sentiment indicators, such as the Fear & Greed Index and the VIX, signal heightened uncertainty. Rising volatility and economic caution have prompted interest in ETFs designed to mitigate risk, aligning with broader concerns about potential market downturns.34

The iShares 20+ Year Treasury Bond ETF (TLT) gained $1 billion in new assets as investors sought safety amidst recession concerns. This shift highlights a preference for fixed-income securities, even as major equity indexes experienced sharp declines. The trend underscores the defensive positioning in volatile markets.56