Dave Nadig Talks ETF Outlook And Popular Trends On TD Ameritrade

ETFs have been hitting new highs as of late, including internet ETFs, cybersecurity, and all things tech. ETF Trends’ Director of Research and CIO, Dave Nadig, joined Nicole Petallides on the TD Ameritrade Network to go over the ETFs hitting new highs, as the Summer continues, and what to expect.

As Nadig explains, it’s been a great six months for the ETF market already, with about $200 billion in inflows year to date, with $60 billion in June alone. The real story is where money has flowed.

The Fed has been buying up corporate bonds and bond ETFs, putting much attention there. Corporate bond ETFs have pulled in a whopping $18.6 billion in new money, followed by $10.4 billion into large cap U.S. equities.

With that, as Nadig continues, there have been some notable trends. ESG funds are now $15 billion year to date, and that has transferred well for ESG-focussed ETFs, particularly broad ETFs like the iShares ESG line up (ESGU, ESGE, and ESGD, which covers the U.S., emerging markets, and developed internationals, respectively).  This seems to be the year for ESG, as folks have reallocated money from the downturn.

Watch Dave Nadig Deliver Some ETF Education On TD Ameritrade

For active funds, there have been a handful of non-transparent (mutual funds, for example) active ETFs launched, and while those specific new funds haven’t garnered a ton of assets, overall, active ETFs have pulled in $18 billion so far this year ($6 billion in June alone).  Much of this is in the bond space, where investors seem willing to try on active for size.
Lastly, there are thematic ETFs. The funds such as U.S. Global Jets ETF (JETS), and the newly launched Roundhill Sports Betting ETF (BETZ) have captured a lot of attention from retail investors. Of course, there continue to be exciting new launches, most notably the Direxion Work from Home ETF (WFH), as well.
As far as what to do now, Nadig explains how ETFs have been suitable for those building low-cost beta portfolios with traditional exposure. However, it is the thematic ETFs that will prove to be some of the best bets on a current level for the sake of getting out there and investing in something so promising, based on the current situation with the market, and how people are working.
All of that said, as Nadig notes, “This isn’t the time for most people to make big, swinging bets that will put them either all in or all out of a market they’re not familiar with. If you’re looking to do a little bit of trading around the edges, I’d focus on these names like WFH that are really going to be there for this next phase of the economy.”

For more market trends, visit ETF Trends.