Prominent Trends in ETF Investment Portfolios

Speaking of sector weights, technology and financials had the highest levels of conviction among investors as both sectors exhibited the largest active weights of greater than +/- 3% from the benchmark. In the current growth-oriented rally, it is not surprising many have jumped onto tech growth stocks. Additionally, many have looked back into financials for their cheap valuations and as a potential play in a rising rate environment.

Related: Volatility Dips in Emerging Markets Stocks, ETFs

Lastly, in the ongoing search for yield, investors have taken on greater credit risk to squeeze out higher payouts. On average, investors overweight 19% to securities rated BB or below, or speculative-grade rated debt securities, while only 17% of portfolios analyzed have a net overweight to investment-grade bonds, according to SSGA.

For more information on the ETF market, visit our ETF performance reports category.