ETF Flows Slow to a Trickle
Following strong inflows in September, investors hit the brakes in October.
Just $1.9 billion of new money trickled into exchange-traded funds in October following the strong $33 billion that poured in during September. Investors pulled more than $11.3 billion from U.S.-stock funds, opting to put $6.5 billion to work in international stocks and $4 billion into bonds. Gold funds continued to shine, as the commodities asset class attracted $1.6 billion. Overall ETF inflows of $1.9 billion in October was the weakest monthly showing so far in 2012, and it comes amid a slowdown in new ETF issuance and a uptick in ETF closures. For the year to date, there have been only 159 ETF launches and 97 closures, for a net increase of 62, compared with a net increase of 278 in all of 2011. See the first table below.
Among Morningstar categories, China region, diversified emerging-markets, and Europe stock each attracted inflows of more than $1 billion. Emerging-markets bond also saw hearty inflows, but investors pulled back on high-yield bonds, perhaps taking profits after several months of strong inflows and returns. The category lost $800 million in investor capital.
Michael Rawson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.