Exchange-traded funds in November had their third biggest asset inflow in the product’s two-decade history, according to a new report from ETF.com.
Investors allocated $42 billion to ETFs last month, most of it into equities, bringing the year’s asset gathering to some $192 billion—ahead of last year’s record $188 billion.
November’s monthly inflow was exceeded only in September 2008 and December 2007.
The mid-September to mid-October pullback in financial markets caused by growth concerns in the Eurozone, Japan and China has segued to a focus on the relatively healthy U.S. economy.
The S&P 500 Index rose by more than 2% in November, which along with the huge inflows helped lift total U.S.-listed ETF assets to just shy of a record $2 trillion, according to data compiled by ETF.com.
This compares with $3 trillion for hedge funds and some $15 trillion for open-end mutual funds.