Exchange traded funds continue to see inflows with a total of $28.6 billion in January. International equity ETFs saw the heaviest inflows, especially emerging markets.
“Flows were driven by international-stock ETFs, where diversified emerging-markets funds have been particularly strong, averaging a record $6 billion over the past two months. Flows into sector stock ETFs picked up in January allowing financial and real estate sector ETF assets to hit record levels. Flows into U.S. stock ETFs moderated somewhat,” Michael Rawson wrote for Morningstar. [Emerging Market Dividend ETF Trouncing Competition]
Broad-based emerging market exchange traded received $6 billion in new capital over the past two months. The iShares MSCI Emerging Markets Index (NYSEArca: EEM) had the highest inflows, with $3 billion alone. Rawson reports that EEM may have benefited from the recent index change that Vanguard made, with the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) gaining less than $1 billion. [Are Emerging Market ETFs Raising a Red Flag?]
Municipal bond funds and other taxable bonds have seen outflows over the same time period. The funds are still positive after the huge influx of inflows seen in 2012.