Exchange traded fund inflows slowed in October as investors shifted away from U.S. equities and into foreign stocks and fixed-income assets.
Compared to the $33 billion added in September, ETFs only attracted $1.9 billion in new inflows over October, the weakest monthly asset growth so far this year, reports Michael Rawson for Morningstar. The ETF industry had accumulated $1.287 trillion in assets at the end of the month.
ETF investors withdrew $11.3 billion out of U.S. stock funds but put $6.5 billion into international stocks and $4 billion into bonds.
Specifically, China region, diversified emerging markets and Europe equities attracted over $1 billion in inflows. While investors piled into the attractive yields in emerging market bonds, high-yield bond options lost $800 million.
Meanwhile, gold funds attracted $1.6 billion. [Eight ETFs for Gold Exposure]
Over the month, iShares brought in the lions share of new ETF assets, adding $7 billion in inflows. Meanwhile, Vanguard garnered $3 billion in assets and Van Eck Global attracted $800 million. Year-to-date, iShares has added $41.9 billion in assets, Vanguard $44.8 billion and Van Eck $3.7 billion.