Exchange-traded funds listed in the U.S. garnered $245 billion of inflows in the first half of 2017, the best start of a year in the industry’s 24-year history, according to State Street Global Advisors.
SSGA’s latest ETF flash flows report said the inflows equated to nearly 10% of assets under management at the start of this year, well ahead of the previous highest percentage gain of 7% in 2012.
After a record-setting 2016, when they flirted with the $100 billion mark for the first time, fixed income ETFs are on pace to shatter all records this year after accumulating flows of $70 billion in the first half, according to the report.
SSGA said this had to do both with investors seeking low-cost, efficient beta exposures to manage duration or seek income opportunities against a low and oscillating rate environment, and seeking to bolster portfolios in the event of equity drawdowns or geopolitical tail risks.
For their part, equity ETFs amassed $172 billion in the January-to-June period, half of the previous 12-month inflows.
International funds experienced their best-ever yearly start with more than $80 billion of inflows in the first six months of this year, including some $20 billion deposited into international ETFs in June.