08.08.2016

SSGA Reports ETF Market Status for H1 2016

State Street Global Advisors – Through the first six months of 2016, net inflows into fixed income ETFs outpaced flows into equity ETFs by a margin of $50 billion dollars.  However, with markets bouncing back sharply just days after Brexit, investors rushed back into equities in July with equity ETFs and fixed income ETFs attracting $32.6 billion and $10.7 billion of inflows respectively.

Other highlights from State Street Global Advisors’ latest US ETF Flash Flows (attached) include:

  • While firms in the Technology sector have surprised on earnings by over 90 percent this quarter, these gains did not transcend into inflows.  Technology sector ETFs posted outflows of $617 million during the month;

 

  • On the heels of strong inflows in June, investors added another $1.2 billion of inflows into Real Estate ETFs, which led all sectors;

 

  • Yielding nearly 3 percent, corporate bonds appear to be one of the last vestiges for yield, a trend that has not gone unnoticed by ETF investors.  In July, investors added nearly $5 billion of net inflows into corporate bond ETFs.

 

  • Amidst a backdrop of slowing growth, geopolitical uncertainty and a decline in real interest rates, investors continued to add to their exposure to precious metals.  Namely ETFs focused on gold, which have attracted over $15 billion of net inflows YTD through the end of July.

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