Investors continued to jump into exchange traded funds for access to the various market segments, notably alternative weighted funds, Schwab says.
According to a Charles Schwab note, ETF assets custodied at Schwab increased 23% year-over-year, slightly higher than industry growth.
Among the various ETF products available, alternative weighted ETFs accounted for a robust 29% of inflows over the past year, attracting 39% of retail trader flows, 31% of RIA clients and 25% of retail investors. Retail traders account for those on the “Schwab Active Trading” platform.
Alternative weighted ETFs include index-based funds that do not follow the traditional market capitalization weighted methodology.
In the second quarter, alternative weighted ETFs brought in 48% of inflows year-over-year.