Total inflows to U.S-listed exchange traded funds slowed last month although ETFs have posted sharp growth for 2011. Also, ETF trading volume spiked in August.
In August, U.S. ETFs only added a little over $2 billion, compared with $13.2 billion for July, reports Chris Flood for the Financial Times. Year to date, ETFs saw $73.2 billion in inflows, up 54.1% over the same period for 2010.
During August, equity, commodity and real estate ETFs experienced the largest outflows, whereas safe-haven categories such as bonds pulled in more assets. SPDR Barclays Capital 1-3 Month T-Bill (NYSEArca: BIL) was the second most popular destination, raking in $2.1 billion, according to the FT report.
SPDR S&P 500 (NYSEArca: SPY) attracted inflows of $3.7 billion, but other large equities-based ETFs were not so fortunate, including PowerShares QQQ (NasdaqGM: QQQ), which lost $1.5 billion, and Financial Select Sector SPDR (NYSEArca: XLF), which lost $1.4 billion..
Meanwhile, leveraged and inverse ETFs added $4.4 billion, compared with their $398 million outflow in July. Year to date, leveraged andinverse ETFs brought in $9.7 billion, up 37.7% from the same period last year. Trading volumes for leveraged and inverse ETFs jumped 150% in August from the previous month. [Do Leveraged ETFs Really Move the Market?]