Investors are increasing allocations toward equity exchange traded funds and are shifting to short-duration fixed-income assets.
According to asset flows on the Charles Schwab trading platform, ETF assets custodied at Schwab jumped 22% year-over-year to $168 billion, or up 11% for the quarter.
Among the investors, retail traders, who trade at least 36 times a year, only made up 5% of the 12-month ETF inflows, whereas retail investors and RIA clients made up the remaining 95%, with a 47% and 48% split, respectively. [ETF Chart of the Day: S&P 500]
Source: Charles Schwab
Investors showed a greater interest for equities, with international equity ETFs, notably those that track Japan, accounting for 35% of first quarter flows and sector ETFs, particularly financial, global real estate and energy, making up 14% of inflows. [Japan ETF Rakes in $5 Billion, Rallies to Highest Since July 2008]