Market volatility and economic recovery concerns continued to weigh down on the broader exchange traded fund (ETF) industry, though several asset classes and individual funds saw impressive growth.
ETF industry assets closed out the month totaling $788 billion, according to the National Stock Exchange. The industry gained more ETFs to end the month with 914, and two more ETNs were added, bringing the total to 95. The total for all U.S.-listed exchange traded products was 1,009 – a new record.
SPDR Gold Shares (NYSEArca:GLD) was the biggest gainer in terms of assets for the month, adding $3.1 billion in assets. Gold has been one of the most alluring assets in the last month as risk-averse investors prize quality and safety above all else. Also, rising gold on a rising dollar tells us that there is something bigger than currency movements drawing investors to this traditional safe-haven asset. [Why Investors Have Gold ETFs on the Brain.]
Fixed-income ETFs were also popular, pulling in $6.2 billion. Long commodities also grabbed some assets to the tune of $3 billion. [Fixed-Income a Sound Strategy?]
Despite fixed-income’s popularity, many financial analysts think the fixed-income market has run its course and that “investors need to be in stocks for the long run in order to come out ahead of inflation.” [Treasury ETFs Step Back.]
To see how ETFs did last month, visit our June ETF performance report.
Tisha Guerrero 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.