Investors Plowing Cash Into ETFs in Second Quarter | ETF Trends

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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