Bond ETFs Remain Top Draw in June
July 4th 2012 at 6:00am by Tom Lydon
Despite a choppy month on Eurozone debt concerns, both stock and bond exchange traded funds saw positive flows in June. While ETF investors moved back into the equities market, fixed-income assets still remained a hot draw.
By the end of June, assets in U.S.-listed ETFs and exchange traded notes stood at $1.18 trillion, or 4% higher month-over-month and up 7% for the same month last year, according to the ETF Industry Association. [ETFs Gather Over $4 Billion in May as Bonds Favored]
Over the month, long fixed-income exchange traded products gained $4.8 billion, U.S. equity ETPs gathered $4.3 billion in assets, commodities attracted $1.3 billion and global/international equity funds added $1.2 billion.
So far year-to-date, the ETF universe has expanded by $75.91 billion in assets, with U.S. equity ETPs bringing in $22.7 billion, fixed-income funds adding $35.1 billion, global/international equity ETPs gaining $12.2 billion, real estate attracting $12.2 billion and commodities gathering $3.4 billion.
Among the big three, State Street saw $4.8 billion in new inflows, BlackRock’s iShares experienced $3.5 in new cash and Vanguard added $1.3 billion.
ETFs with the highest cash inflows in June include SPDR S&P 500 (NYSEArca: SPY) with $3.6 billion, PowerShares QQQ (NasdaqGM: QQQ) with $1.4 billion and iShares iBoxx Investment Grade Corporate Bond Fund (NYSEArca: LQD) with $1.3 billion.
In contrast, funds with the largest outflows over the month include Vanguard MSCI SmallCap (NYSEArca: VB) with -$965 million, iShares Barclays 1-3 Year Treasuries (NYSEArca: SHY) with -$650 million and iShares FTSE China 25 (NYSEArca: FXI) with -$568 million.
At the end of June, there were 1,476 U.S.-listed fund products, or 15% more than the 1,288 products at the same time last year.
For more information on ETF asset flows, visit our ETF performance category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.