Jittery investors are pouring money into exchange-traded funds tied to defensive sectors, seeking safety in a market that continues to be whipsawed by worries about rising interest rates.
Net inflows into defensive ETFs—or those related to the consumer staples, healthcare, utilities and real-estate sectors, along with precious metals, Treasurys and commodities—have totaled $50 billion this year, according to Morningstar data through April. That sum has already outpaced the group’s $42 billion in inflows for all of 2021 and is on track to top 2020’s total of $75 billion as well.
