Additionally, he noticed that the past 12 to 18 month flows show that investors have leaned toward equity income or dividend ETFs when they couldn’t find suitable yield generating options in fixed-income ETFs. Specifically, Kittsley saw an uptick in preferred and real estate investment trust ETFs. The iShares S&P US Preferred Stock Index Fund (NYSEArca: PFF) saw $2.8 billion and Vanguard REIT ETF (NYSEArca: VNQ) added $4.4 billion in new inflows year-to-date.
“At the end of the day, the tool box for investors has increased so much because of the innovation we’ve seen,” Kittsley said.
For more information on ETF asset flows, visit ur ETF performance reports category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own EMB and LQD.