It Was Business as Usual for ETF Investors in January
While meme stocks were making headlines, new money continued to pour into broadly diversified, low-cost index ETFs.
Global stock markets stumbled out of the gate to start the new year. The Morningstar Global Markets Index--a broad gauge of global equities--dipped 0.31% in January 2021. Bonds slipped, too. The Morningstar U.S. Core Bond Index declined 0.74%, as rising yields pushed bond prices lower.
Bond exchange-traded funds captured the majority of inflows for much of 2020, but recently flows have favored stocks. After allocating a record $88.1 billion to equity ETFs in November and another $43.8 billion in December, investors poured $43.7 billion into these funds in January.
Ben Johnson has a position in the following securities mentioned above: IJR. Find out about Morningstar’s editorial policies.