ETF Trends
ETF Trends

Inflows to exchange traded funds listed around the globe slowed to $9.5 billion in October from $43.3 billion in September, which was the best month of the year.

Last month, flows into ETF were focused in emerging markets, gold and investment-grade bonds, according to a report from BlackRock.

Emerging market bond products garnered $1.9 billion, a monthly record. [Emerging Market Corporate Bond ETFs Trump Low Treasury Yields]

“Investors favored those providing sovereign exposure which offer higher credit quality than many high yield corporate bonds. Credit spreads have compressed in recent months as investors accept additional risk to gain income,” said ETF manager BlackRock.

In emerging market funds, investors favored ETFs tracking China and Brazil, where central banks have aggressively lowered interest rates.

Gold exchange traded products gathered $2.5 billion in October while investment grade corporate debt funds attracted $3.3 billion, according to BlackRock.

Meanwhile, investors pulled $10.7 billion from U.S. equity ETFs last month. SPDR S&P 500 (NYSEArca: SPY) saw outflows of $7.2 billion after investors withdrew $10.5 billion in September.

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