2min chapter

The Compound and Friends cover image

Did Bonds Just Bottom?

The Compound and Friends

CHAPTER

Prolonged Drawdowns and Investor Flows in an ETF

This chapter examines the reasons behind the consistent investor flow into an ETF despite its prolonged drawdowns over three years. It concludes that portfolio rebalancing and asset allocation can explain these flows and emphasizes that the gradual nature of the drawdowns distinguishes them from stock market crashes.

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