U.S.-listed ETFs posted net monthly outflows in June — for a third month in 2018, according to the State Street Global Advisors’ U.S. ETF Flash Flow report.
“This is the greatest number of months with outflows for a year since 2008, and we are only halfway through 2018!” according to Matthew Bartolini, head of SPDR Americas Research at State Street Global Advisors and author of the report. “One more month of net outflows and 2018 would tie the record of four reached a few times in the late nineties.”
Even with these three months of outflows, ETFs still saw $124 billion of net inflows, pushing total U.S.-listed ETF assets to more than $3.5 trillion.
Bartolini writes that flows were muted as trade tensions rattled investor sentiment — pushing global equities negative for the year and prompting investors to rotate out of stocks.
According to Bartolini, equities are the main reason for the choppy waters in ETF flows. Much like the broader industry, equities have also posted three months of outflows in 2018.