(Bloomberg) -- As the Federal Reserve prepares to raise interest rates, exchange-traded funds designed to protect bond portfolios from the fallout are likely to see big inflows. 

Investors have pulled $7 billion from fixed-income ETFs as of March 12. This is a huge reversal from the $20 billion that flowed in during January and February. A positive jobs report and signs of an improving economy have investors thinking the Fed may raise rates as early as June. That would have ripple effects across the bond market as newly issued bonds become more attractive than existing bonds suddenly sporting below-market interest rates. 

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