How ETF Investors Reacted to the First 100 Days of Trump

Financial sector ETFs on the TD Ameritrade platform saw the greatest net flows as a percent of asset under management immediately following the election, but the positive momentum diminished each month and even turned negative in April with outflow money being repurposed into other areas of opportunities, like defensives and industrials. Millennial investors comprised the largest group to lead this trend.

As post-election winners fell off, defensives experienced greater inflows, turning out positive net flows in April after a sharp post-election dip.

Industrials also attracted heavy inflows in the quarter ended March as Millennials focused on the sector. However, the momentum waned among older age groups as the quarter extended, with Boomers becoming net sellers in March. Nevertheless, in April, investors turned back toward the sector, largely targeting aerospace & defense ETFs, which may be a response to the heightened global military tensions and greater U.S. action.

Lastly, while crude oil and energy slipped this year, the energy sector still attracted positive net flows each month as investors may have looked at falling prices as a cheap entry point. Energy and petroleum names were particularly popular among Millennial investors. Inflows into energy ETFs, though, turned negative for April.

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