ETF Trends
ETF Trends

2011 will go down as the year of the bond exchange traded fund.

ETFs in Morningstar’s taxable bond category led the year with net inflows of $37.3 billion through the end of November.

Fixed-income exchange traded products have grown to 591 from 122 offerings in 2007. Over 110 new fixed-income products have launched this year alone. [Bond Investors Gravitate to Index ETFs]

U.S. stock ETFs have seen inflows of $31.5 billion year to date, while international stock funds have added $13.5 billion, according to Morningstar.

Commodities ETFs have gathered $3.1 billion so far in 2011 thanks in part to investors piling into gold ETFs in November.

SPDR Gold Shares (NYSEArca: GLD) saw net cash inflows of $3.1 billion in November to lead all ETFs  [Gold ETFs Rake in Assets; Bullion Holdings Near Record]

Municipal bond ETFs have added $584 million so far in 2011. [Muni Bond ETF Up Despite Default Rumblings]

Funds in Morningstar’s “alternative” category have totaled $15.9 billion in year-to-date inflows. The alternative category includes leveraged and inverse ETFs.

In November, investors pulled over $4 billion from U.S. and international stock ETFs, combined. They pumped $5.2 billion into taxable bond ETFs, according to Morningstar. The commodities category experienced net inflows of $3 billion last month, driven by hefty gold ETF buying.

Full disclosure: Tom Lydon’s clients own GLD.

The opinions and forecasts expressed herein are solely those of John Spence, 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.