Last week the iShares Barclays 20 Year Treasury ETF (Ticker: TLT), which tracks longer-dated paper, fell by 4.1% in the week. That amounts to a 500-point plus in the Dow, according to Barron’s. Our own Stan Luxenberg sent me this note about bond inedex ETFs: ” Rob Arnott says these cap-weighted benchmarks make no sense because they give the heaviest weight to issuers that have the most bonds outstanding.” So does this mean investors are regaining an appetite for risk, selling off Govies for stock funds?

Says Stan, our longtime mutual fund editor: Fundamental bond funds

Rob Arnott has been delivering solid returns with fundamental stock funds. (Arnott runs Research Affiliates, which creates and subadvises fundamental and equal-weight ETFs.) Now he has introduced a fundamental bond fund. Fundamental bond funds could pose a challenge to traditional bond index funds...

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(Read more from Editor-in-Chief, David A. Geracioti on his blog, Von Aldo.)