Exchange-traded funds listed in the U.S. hauled in nearly $29 billion last month and investors in February are continuing to buy ETFs, which are attracting more than $1 billion a day when markets are open.
“On the heels of a strong December, ETFs brought in $28.6 billion in January, leading to the strongest two consecutive months of flows into ETFs ever,” notes Morningstar ETF analyst Michael Rawsom. “This extends the streak of monthly inflows into ETFs to 20 months.”
And recently most of that new cash is chasing the rally in stocks.
“Year to date flows into ETFs total $33.4 billion, with $30.6 billion into equity products. That is over $1 billion a day so far in 2013, handily beating the one year average of $540 million a day,” says Nicholas Colas, ConvergEx Group chief market strategist.