After the phenomenal January month where U.S. markets hit all-time highs, stocks took a sudden nose dive and suffered through extended volatility over the February and March months. The sudden prospect of a trade war, inflationary fears and central bank policies all contributed to the heightened uncertainty in the markets that dragged U.S. benchmarks into correction territory.
On the other hand, international and small-cap funds still showed some strength. U.S. small-cap funds added $2.84 billion while global stocks for developed markets excluding the U.S. attracted $5.5 billion in inflows.
“The inflows into international and small-cap funds shows that investors were just reducing their large-cap exposure, they weren’t shying away from ETFs in general,” Bartolini added. “There continues to be a generational shift toward ETFs; even with the outflows, usage continues to go higher.”
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