Fixed Income ETFs Added Billions in February as Equity Funds Bled

Globally, ETFs and ETPs had their 25th consecutive month of net inflows, ETFGI reported

Volatility drove investors to government bonds and gold, ETFGI says. Volatility drove investors to government bonds and gold, ETFGI says.

Exchange-traded funds and products listed on U.S. exchanges had net inflows of $1.5 billion in February, raising assets in 1,863 funds from 95 providers to more than $2 trillion, ETFGI reported last week.

ETFs/ETPs listed globally gathered $10.8 billion in net new assets in February, the 25th consecutive month of net inflows, according to the report.

The global industry had assets of $2.9 trillion in 6,200 funds from 279 providers, with 11,963 listings on 64 exchanges in 51 countries.

U.S.-listed fixed income ETFs/ETPs in February had the largest net inflows with $10.5 billion, followed by $5.6 billion for commodity funds. The commodity flows set a monthly record, exceeding the September 2012 high of $4.3 billion.

Equity ETFs/ETPs hemorrhaged a net $15.3 billion in February.

“February was another volatile month for equity markets, which drove investors to invest net flows into government bonds and gold,” ETFGI’s managing partner Deborah Fuhr said in a statement.  

“The S&P 500 closed the month down 0.13%. Despite recent uncertainty, emerging markets gained 0.31% in February, while developed markets outside of the U.S. declined 1%.”

Vanguard’s U.S.-listed funds enjoyed the largest net ETF/ETP inflows in February with $3.6 billion. iShares trailed with $2 billion net inflows and SPDR ETFs with $1.2 billion.

This year to date, Vanguard has recorded the most net inflows with $7.4 billion, followed by SPDR ETFs with $1.9 billion and iShares with $1.7 billion.

Globally in 2016, Vanguard has amassed net ETF/ETP inflows of $8.1 billion, followed by Nomura AM’s $5.7 billion and iShares’ $3.6 billion net inflows.

With a 33.5% market share, S&P Dow Jones has the largest amount of U.S.-listed ETF/ETP assets tracking its benchmarks. MSCI is second with 14.4% market share, followed by FTSE Russell with 13.6% market share.

--- Check out There’s Only One Buyer Keeping S&P 500 Bull Market Alive on ThinkAdvisor.

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