Investors scaled back into stock exchange traded funds amid October’s strong rally, according to industry data.
According to a Deutsche Bank research note, U.S.-listed exchange traded products saw new inflows of $107.8 billion in October, bringing total ETP assets to $1.07 trillion, or up 7.2% year-to-date. Globally, ETP assets under management hit $1.49 trillion, or up 6.9% year to date. [ETFs See $24 Billion Inflow in October]
Long-only ETPs garnered $22.2 billion in inflows for the month, compared to the $3.3 billion in September. Long-only fixed-income ETPs also added on $4.4 billion in new money. In contrast, long-only commodity ETPs bled $0.26 billion.
U.S.-based stock ETPs benefited the most from the risk-on sentiment, increasing by $13 billion, followed by emerging market equities with $4.8 billion, dividends at $2.8 billion and U.S. domestic cyclical sectors at $1.2 billion.
Corporate bonds ETPs also added $3.7 billion. Short-term fixed-income ETPs lost $1 billion, which shows investors are losing interest in safe-haven assets.
As a whole, ETFs continued to gain market share at the expense of futual funds, with ETF assets under management at 10.1% of mutual fund assets at the end of September.