Investors have put almost as much money into exchange traded funds in the first half of the second quarter as they did through all of the first quarter, according to a report Wednesday.
ETFs have attracted $20.4 billion of new assets quarter-to-date as compared to $27.2 billion for the first quarter, according to Nicholas Colas, ConvergEx Group chief market strategist.
He said investors are gravitating toward “old-school” ETFs such as those that invest in stocks and bonds with inflows of $14.2 billion and $5.5 billion, respectively, quarter-to-date.
“The biggest turnaround belongs to emerging markets ETFs, which have added $3.8 billion in new capital after losing $7.5 billion in the first quarter. The market volatility we’ve seen in recent weeks hasn’t gone unnoticed by ETF investors, however,” Colas wrote in a report Wednesday.
“Inverse leverage funds have received $1 billion of new money in the quarter-to-date, and volatility-based products have added $642 million in assets,” he added. “Risk appetites may be returning, but not without a side of risk management.” [VIX ETFs Relatively Quiet as Stocks Fall]
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