During the traditionally slow summer trading, different types of exchange traded fund investors acted in various ways over recent months, with some surprise plays standing out.
Among the standouts, technology ETFs continued to track positive growth over the summer after witnessing negative cumulative net flows last summer, according to TD Ameritrade platform data. Global real estate and international stock ETFs were also other categories that saw an about face these past few months after negative flows last summer.
On the other hand, real estate ETFs were negative this summer, compared to the positive growth over the same period last year, with outflow money being repurposed in other areas like agriculture and industrial metal ETFs. ETF investors also shied away from natural resources and communications ETFs this summer as compared to the last.
Different investor groups also exhibited varying investment habits. For instance, the largest increase in net flows this summer among millennials was in agriculture ETFs in August, which jumped 29%, while U.S. stock ETF demand remained flat in July and August. On the other hand, municipal bond and energy ETFs were among the less favored picks among millennials.
Related: Explosive ETF Growth Is Not Unwarranted
Meanwhile, boomers were net buyers of agriculture, alternative and industrial metal ETFs, reflecting a penchant for diversification in a traditionally tumultuous or weaker summer season. Boomers were also less enthusiastic about international stocks, consumer cyclical and consumer defensive ETFs.
Generation Xers also bought agriculture ETFs, along with health and consumer defensive picks while selling off U.S. stock, munis and consumer cyclical related ETFs.
U.S. equities have seen some pullbacks over the summer months with major benchmarks stuck within range as geopolitical risks pushed more investors toward safer plays. Additionally, consumer-related ETFs were also among the weakest segments over the past three months, after a string of weak reports form brick-and-mortar shops and greater competition from online giants like Amazon.
For more information on ETFs, visit our ETF Performance Reports category.