BlackRock found minimal outflows of ETFs, or $30 billion in net ETF outflows compared to $1 trillion in ETF exchange trading over the week ended February 9. ETFs made up 3.86% of the overall U.S. equity trading volume during the period, compared to an average of 4.32% in the 12 months prior.
Furthermore, despite the severe market volatility and elevated trading volumes, ETFs still traded with tight bid-ask spreads, heavy volumes and high liquidity.
“Elevated trading volumes show that investors used ETFs to adjust positions in a fast-changing market. Widely owned ETFs maintained tight bid-ask spreads throughout the turmoil. Meanwhile, evidence shows that heavy trading volumes in both stock and bond ETFs took place efficiently,” the analysts added.
For more information on the ETF industry, visit our ETF performance reports category.