July was a great ETF flow month, with $50 billion of inflows. Although August was a little slower with $30 billion, the year to date total is no less than $282.7 billion, far ahead of last year’s corresponding year to date inflow which was sitting at $147.9 billion.
The U.S. fixed income was ahead of any other asset class last month with an inflow of $13.4 billion. It was followed by international equity, which raised $9.3 billion. Surprisingly, U.S. equities gained only $1.5 billion despite the strong performance of this market. Leveraged ETFs lost $1.6 billion.
In the top 10 monthly inflows, 5 ETFs are on the fixed income market. This includes the Vanguard Total Bond Market ETF, which is ranked number 2 with $2.2 billion inflows. The top inflows for August was the Invesco QQQ Trust (QQQ) with $2.3 billion.
Top 10 of the month
The biggest outflow goes to the SPDR S&P 500 ETF Trust (SPY), with minus $2.5 billion, accompanied in the bottom ten by two other growth ETFs: Vanguard Growth ETF (minus $1.7 billion) and iShares Russell 1000 Growth ETF (minus $1.3 billion).
Contrasting with the overall results of U.S. fixed income ETF in general, we can find two of them in the bottom 10: the iShares Short Treasury Bond ETF (minus $1.7 billion) and the iShares 20+ Year Treasury Bond ETF (minus $1.5 billion).
Lastly, dividends ETF did not do so well either in terms of asset raising, with both SPDR S&P Dividend ETF and ProShares S&P 500 Dividend Aristocrats ETF, losing $1.5 billion and $1 billion respectively.
Bottom 10 of the month
What is an ETF?
ETFs, short exchange-traded fund, is a type of security traded on the stock market. Unlike simple stocks, ETFs are a collection of various stocks. They can sometimes follow a specific index but can also be based on a group of stocks in a specific sector or industry. The difference with index funds is that ETFs can be traded during the day as normal stocks, whereas index funds can only be purchased at the end of the day.
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