High-quality bonds with short maturities can help mitigate the risk of both rising interest rates and defaults during an economic slowdown. That's why investors have been pouring billions into these cash-like ETFs.

During Refinitiv Lipper’s fund-flows week that ended January 4, 2023, investors were overall net purchasers of fund assets (including both conventional funds and ETFs) for the second week in three, pumping in a net $37.06 billion.