The market’s recent rebound has emboldened ETF investors, who are pumping money into equity funds with energy and real estate leading inflows among sectors.
Investors added $9.4 billion to U.S. stock ETFs in June following two months of net outflows, investment research firm Morningstar said Tuesday.
The company notes that in the top-heavy ETF business, the largest managers continue to get bigger.
For example, State Street Global Advisors collected inflows of about $9 billion last month to lead all ETF providers. It is the second-largest ETF manager with $291 billion in assets, according to Morningstar.
BlackRock’s iShares is the largest with $482 billion while Vanguard follows State Street with $209 billion.
Together, the so-called ETF Big Three control a market share of 83.4%, according to Morningstar. [Vanguard, Bond Funds Dominating ETF Flows]
Within sector ETFs, energy and real estate investment trusts saw the most interest in June. Energy Select Sector SPDR (NYSEArca: XLE) and Vanguard REIT (NYSEArca: VNQ) picked up roughly $900 million and $600 million, respectively. [Energy ETFs Start Second Half with a Bang]
In bonds, investors favored corporate debt over U.S. Treasury bonds. The iShares iBoxx InvestGrade Corporate Bond (NYSEArca: LQD) added $1.2 billion while iShares Barclays 1-3 Year Treasury Bond (NYSEArca: SHY) and iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT) bled $600 and $200 million, respectively, according to Morningstar. [REIT ETFs to Play Higher Rents]