Exchange traded fund investors turned risk-on over July, putting money into corporate debt and overseas markets, on rising bullish sentiment.
The most popular ETF play over the past month was still iShares Core S&P 500 ETF (NYSEARCA: IVV), which attracted $3.8 billion in net inflows, according to XTF data. The SPDR S&P 500 ETF (NYSEARCA: SPY) topped the list with $1.0 billion in flows as well.
ETF investors also threw money into overseas markets where valuations appear cheaper relative to the loftier prices in the U.S. – U.S. markets are trading at forward price-to-earnings of around 18 times, compared to historical averages of 15 times.
The second most popular play of the past month was the iShares Core MSCI EAFE ETF (NYSEArca: IEFA), bringing in $2.9 billion in net inflows. Additionally, the Vanguard FTSE Developed Markets ETF (NYSEArca: VEA) added $1.08 billion and the iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG) saw $838.1 million in inflows as well.