So far this year, U.S.-listed ETFs have gathered $37.5 billion with 92% of the cash going into stock funds, according to ConvergEx Group market strategists. [ETFs Gathering Over $1 Billion a Day So Far in 2013]
“Year to date ETF money flows are overwhelming into equity products,” they wrote in a note Tuesday.
However, volatility-linked ETFs have also seen significant inflows despite a declining VIX. This suggests that some investors are hedging long equity portfolios, or even speculating on a correction.
The largest exchange traded product tracking futures contracts based on the CBOE Volatility Index is iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX). [Inverse VIX ETFs Rise 170% as Volatility Hits Five-Year Low]
“It is down 31% year to date as the VIX has drifted lower. Yet, despite this performance, it has received $440 million in new investments,” according to ConvergEx. “Other hedging products exhibit similar performance, and yet many have also seen new capital in the New Year.”