ETF Asset Flows Reveal Investors’ Love for Stocks

November 8th at 2:47pm by Tom Lydon

The promise of continued easy money helped equity exchange traded funds experience another great month, with investors jumping on the rally in stocks.

“The expectation that the Federal Reserve will maintain it’s QE scheme at its current size into 2014 and positive market performance encouraged investors to put net inflows of US$32.6 billion back into the market through ETFs/ETPs” Deborah Fuhr, Managing Partner at ETFGI, said in a press release.

Specifically, global equity ETFs attracted $34.6 billion in October, whereas global commodity funds lost $2.8 billion in assets and global fixed-income ETFs saw $227 million in outflows.

Year-to-date, global ETF assets expanded 19%, fueled by positive market performance and net inflows of $202.2 billion. Global equity ETFs attracted $193.9 billion in assets so far this year, whereas fixed-income ETFs saw $21.4 billion in inflows and commodity ETFs experienced $33 billion in outflows.

Regionally, North American equity ETFs were the place to be, bringing in $117.7 billion year-to-date, followed by developed Asia Pacific equity ETFs with $32.8 billion and European equity with $20.7 billion. Emerging market equity ETFs, though, saw $6.3 billion in outflows.

Global ETF assets hit a new record high of $2.3 trillion at the end of October.

Looking at U.S-listed ETFs, the industry attracted about $26 billion in assets over October, according to BlackRock. U.S.-listed equity ETFs brought in $30.7 billion while U.S.-listed fixed-income ETFs lost $2.6 billion and U.S.-listed commodity ETFs shrunk $2.5 billion.

The U.S. ETF industry attracted $156.4 billion this year ended October. There were 1,524 ETFs, with $1.641 trillion in assets.

For more information on ETF asset flows, visit our ETF performance reports 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.

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