Even with a December 2018 to forget, ETFs continued to amass assets to the tune of over $51 billion while mutual fund flows suffered. Mutual funds, bond and equity funds, in December lost a record $152 billion.
One would assume that outflows from U.S. equities in 2018 would also be evident in ETFs that have been purchasing the downtrodden shares in the three major indexes. However, that hasn’t been the case as ETFs received $314 billion worth of inflows despite a challenging 2018–a drop from the $466 billion the previous year, but given the challenges of 2018, an impressive figure nonetheless.
The primary motivator for investors in 2019 has been price. Regardless of whether an ETF uses an active or passive strategy, investors are keen on seeking out low-cost solutions.
“One of the biggest trends we’ve seen with ETFs in the prior years and into this year has been the growth of low-cost investing, low-cost portfolios where investors have sought out ETFs that have really delivered the outcome they are looking for, but in the lowest cost way,” said David Mazza, Managing Director at Direxion.
To take advantage of low-cost market solutions with a tilted exposure to medium-term, macro market trends, Direxion offers thematic ETFs focusing on relative weight and strategic weight.
Relative Weight ETFs Suite:
Strategic Weight ETFs Suite:
For more market trends, visit the Relative Value Channel.