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ETF Specialist

ETF Flows Smash Record

Investors poured an estimated $81.8 billion into equity ETFs in November.

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After slumping for two straight months, global stock markets rallied in November. The Morningstar Global Markets Index--a broad gauge of global stock markets--climbed 12.61% during the month. Using the MSCI All Country World Index as a proxy, this marked the best month for global stock markets in at least 20 years. Exchange-traded fund investors went along for the ride. After months of relatively tepid demand, equity ETFs experienced a surge of inflows, amounting to an estimated $81.8 billion. This pushed total monthly flows into ETFs to a record $91.4 billion, smashing the prior monthly record of $63.4 billion from June 2019.

Bonds also notched gains in November. The Morningstar U.S. Core Bond Index--a barometer of U.S. fixed-income markets--rose 0.96%, as long-term Treasury yields ticked lower and credit spreads tightened. Flows into bond ETFs slowed, clocking in at an estimated $15.1 billion. Flows were mixed across fixed-income categories. Investors added money to high-yield bond ETFs and withdrew from government and ultrashort-duration bond ETFs.

Ben Johnson has a position in the following securities mentioned above: IJH, IJR. Find out about Morningstar’s editorial policies.