ETF Flows Are Strong Following Market Pullbacks
While Mutual Fund flows overall are still higher than ETFs over time, the shift is changing, even in sporadic market pullbacks. It’s clear to see when bigger pullbacks occur, and tax basis is less of an issue for investors, the shift towards ETFs as the preferred vehicle for market investments has grown.
These findings also end the myth that ETF flows turn negative in a bear market. The data illustrates that during the worst months of the market history, ETF flows respond positively.
This article was written by Michael Venuto, Co-Founder & CIO of Toroso Asset Management, a participant in the ETF Strategist Channel.
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