ETF Trends
ETF Trends

Despite slowing the asset inflows over February, especially in the last weeks on the heels of rising volatility, global equity exchange traded funds recorded their strongest two-month start ever to a new year.

Globally, developed market equity exchange traded products, which included both ETFs and exchange traded notes, saw $13 billion in new inflows, including a $7.3 billion in non-U.S. exposure, according to a BlackRock report. [Here are the Most-Searched ETFs]

Sector funds gathered $4.7 billion, with real estate leading at $1.5 billion as economic indicators pointed to a rebounding U.S. housing market. Emerging market equity ETP inflows slowed. Additionally, Dividend-focused ETPs added $1.6 billion. [ETF Performance Report: February]

Minimum- or low-volatility ETFs also saw heavier inflows, attracting an average $926 million for the firs two months, or double the monthly flows over 2012.

Investors are also taking a more cautious approach to interest rate risk, moving to the short-term fixed-income yield curve. Short-term debt ETPs saw $4 billion in new inflows while other maturities experienced outflows of $1.3 billion.

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