Exchange traded funds saw net inflows slow to around $3 billion for the volatile month of April but they held up much better than traditional mutual funds.
In April, global investors withdrew the most money from stock funds in any April in at least 17 years as Europe’s debt crisis crept back into the headlines, Bloomberg News reports.
Equity funds had net redemptions of $18.6 billion through April 25, according to data from EPFR Global.
Aside from fears over recent volatility in the stock market, there is more evidence that investors are growing tired of paying active fund managers to underperform equity benchmarks.