Exchange-traded fund managers have seen massive inflows into fixed-income ETFs in recent months. As the dust settles from the bond market’s worst year on record, ETFs focused on safe and simple Treasuries have attracted the bulk of the money. Stephen Laipply, the US head of fixed income ETFs at BlackRock, explains this state of affairs on the latest episode of the What Goes Up podcast.

Many investors who follow a standard strategy of investing 60% of their portfolio in stocks and 40% in bonds have found it to be the right time to “fix” that 40% segment, Laipply says. “Investors are looking at this market, the public fixed-income markets, and realizing that they can ‘fix’ their 40 by de-risking it to varying degrees,” he says. “You don’t have to have the majority in high yield to get a certain yield target. You can allocate to the front end of the Treasury curve and get yields that you were seeing at some point in the high-yield market. So it really is an opportunity to get back to what that 40 was supposed to do, which is diversify your risk assets.”

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