Despite Thursday’s pullback, exchange traded fund flows suggest investors are in a risk-on rally mode as ETFs that track safe-haven assets have been experiencing redemptions.

The equities market have been bouncing back over the past month, with the SPDR S&P 500 ETF (NYSEArca: SPY) rising 3.0%, as investors turned risk-on after stocks dipped into a correction.

The rebound this time around could stick as ETFs that track traditional safe-haven assets, like gold, U.S. Treasuries and even hard currencies, saw outflows during the market run up, which suggests that more investors have shifted out of a defensive position to capitalize on the market turn.

For instance, while the SPDR Gold Shares (NYSEArca: GLD) has been the most popular ETF play this year, attracting over $5.1 billion in net inflows, according to ETF.com, investors have recently been trimming their gold positions. Over the past month, GLD saw $443.6 million in net outflows.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.