Some ETF investors are piling into gold while others are betting on a strengthening greenback.
November marked the ninth consecutive month of net inflows for exchange-traded funds. It was also the busiest month so far in 2009 for ETF providers in terms of new product launches. Last month we saw 24 new ETFs introduced to the market, bringing the year-to-date total to 116 new ETF launches. At the end of November there were 911 ETFs available on U.S. exchanges.
International Equity Funds Shine Again in November
On the back of another strong month for emerging-markets ETFs, the international equity category brought in the most assets among the broad asset classes in November. Vanguard Emerging Markets Stock ETF
After Two Consecutive Months of Outflows, Domestic-Equity ETFs See Inflows
Investors were voting with their wallets in favor of lower expense ratios in the domestic-equity category as well. With approximately $1.0 billion in new assets, Vanguard Small Cap ETF
As go the SPDRs
Call it caution, or call it profit-taking. Whatever the case might be, we saw a combined $708.3 million exit Financial Select Sector SPDR
Taxable Fixed-Income Funds Continue to Attract Assets
So far for the year to date, taxable-bond ETFs are the most popular of the major asset classes in terms of net inflows ($32.1 billion). The category had another strong showing in November, helped by broad fixed-income funds Vanguard Total Bond Market ETF
But it was the usual suspects--aka Treasury Inflation-Protected Securities and short duration funds--that led the way for the category once again. Consistent with what we've witnessed in previous months, iShares Barclays TIPS Bond
Investors also continued to shy away from interest-rate risk while looking for a place to park their cash. For instance, Vanguard Short-Term Bond ETF
The Gold Rush Rolls On
Inflows into the commodity category over the past month were led by (you guessed it) SPDR Gold Shares
Investors also poured some $456.0 million into United States Natural Gas
ETF Investors Make Bullish Bet on the Greenback
Currency ETFs attracted $1.1 billion in net inflows in November ($2.3 billion for the year to date). At month-end there was $6.1 billion in total net assets invested across 29 currency ETFs.
Investors poured more than $670.4 million into PowerShares DB US Dollar Index Bullish
Leveraged ETF Investors Continue to Prefer Daily Inverse Products
Investors poured a total of $579.7 million into leveraged, inverse, and leveraged inverse ETFs in November ($13.3 billion for the year to date). Still, leveraged "long" ETFs saw another $466.6 million in net redemptions (for the year to date, the group has seen $6.6 billion in net outflows). Investors were placing bearish bets last month, as evidenced by the $1.0 billion ($19.9 billion for the year to date) in net inflows for inverse ETFs. As of month-end, there was $11.5 billion invested across 62 "long" ETFs and about $20.0 billion invested across 89 "short" ETFs.