Where ETF Investors Have Been Stashed Away in February

Toward the end of the month as volatility subsided, investors grew more risk tolerant, funneling $2.5 billion into investment-grade corporate bond ETFs and $1.6 billion into high-yield bond ETFs. Broader fixed-income ETFs also saw $1.4 billion in inflows. In February, the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) attracted $1.2 billion and iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD) saw $1.1 billion in inflows.

Global fixed-income ETPs brought in $28.3 billion in February.

During the bout of market volatility, U.S. equity ETPs shed $8.8 billion in assets, with large-caps losing $5.3 billion amid weak earnings growth and a pessimistic outlook. Among the market sectors, health care ETFs shrunk the most, losing $3.0 billion, followed by financials and technology with $1 billion in outflows.

On the other hand, defensive equity plays like utilities gathered $2.4 billion in net inflows and low-volatility ETF strategies gathered a monthly flow record of $3.9 billion. The iShares MSCI USA Minimum Volatility ETF (NYSEArca: USMV) experienced $1.79 billion in net inflows for February.

Additionally, inverse equity ETPs, which capitalize off falling prices, also added $1.8 billion in net inflows.

Global stock-related ETPs lost $15.4 billion.