Income-Hunting Investors Are Fueling a $50 Billion ETF Bonanza

In these tumultuous times on Wall Street, at least one investing trend is proving remarkably consistent: Dividend ETFs are notching relentless inflows as traders take refuge in the stock-market storm.

The record $50 billion allocation bonanza so far this year is notable in a world where even cash-like Treasuries are offering income-hungry investors the highest yields in over a decade -- giving defensive strategies like dividend funds a run for their money. At least in theory.

Yet demand for steady income in stocks is booming as money managers bid up companies with a history of paying out profits to shareholders, hoping that will cushion gut-wrenching losses across the broader market.

All told, the cash flowing into dividend-focused exchange-traded funds is already running 25% higher than the record haul secured in 2021, with positive inflows every month so far this year.

The deluge has endured even after Federal Reserve monetary tightening pushed the yield on Treasury bills to a beefy 4% and counting. Proponents are casting dividend-chasing strategies as an inflation hedge of sorts in an era where bonds are suffering from an existential crisis.