As investors debate when the Federal Reserve will start cutting interest rates, other policymakers such as the European Central Bank (ECB) may still have ground to cover in its hiking cycle. The $2.1bn Xtrackers EUR Overnight Rate Swap UCITS ETF (XEON) has traced one of these rates from negative to firmly positive territory, withinvestors now flocking to gain exposure.
According to data from ETFLogic, investors have piled $795m into XEON over the past month, as at 25 May, representing a significant portion of the $1.1bn inflows it has seen over the trailing three-year period.
This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.
