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Exchange-traded funds and exchange-traded notes saw $8.8 billion in net investor inflows in October, according to new data released from the National Stock Exchange. That brings total net inflows for U.S.-listed ETFs and ETNs in 2009 to $72.2 billion.
Industry assets rose slightly from $704.9 billion to $707.4 billion. The split is $699.8 billion for ETFs and $7.6 billion for ETNs.
ETNs enjoyed $656 million in net inflows, compared with $8.2 billion for ETFs.
Inflows By Asset Class: Long-Only ETFs
Inflows were seen in all major asset classes save U.S. equities in October. International equities led the way, with $7.5 billion in inflows, followed by fixed income, with $3.1 billion.
Year-to-date, fixed income, commodity and international equity ETFs lead the flows tables, with $34.6 billion, $25.0 billion and $24.4 billion in inflows, respectively. U.S. equity ETFs suffered $30.1 billion in net outflows so far this year.
| Long-Only ETFs Inflows: October 2009 |
| |
Net Assets |
October Inflows |
YTD Inflows |
| U.S. Equity |
$317,287 |
($4,870) |
($30,133) |
| International Equity |
$184,305 |
$7,473 |
$24,390 |
| Real Estate |
$11,028 |
$624 |
$3,047 |
| Fixed Income |
$93,621 |
$3,078 |
$34,586 |
| Commodity |
$64,948 |
$885 |
$24,968 |
| Currency |
$4,671 |
$515 |
$1,165 |
| TOTAL |
$675,860 |
$7,705 |
$58,012 |
| Source: NSX. Data through Oct. 31, 2009. All figures in $ US millions. |
Inflows By Asset Class: Leveraged/Inverse ETFs
Leveraged and inverse ETFs allow investors to make aggressive, short-term bets on the direction of the markets. Watching flows into these funds gives a good window on how investors are positioning themselves for the short term.
In October, fund flows into leveraged and inverse ETFs were decidedly bearish, with traders putting just $42 million in net new money to work in leveraged long ETFs, while investing $1.1 billion in inverse and inverse-leveraged ETFs. Year-to-date, the flows tell a similar story, with investors pulling $5.7 billion out of leveraged long funds and plowing $19.9 billion into inverse products.
Flows into inverse U.S. equity ETFs led the way in October, with bearish funds pulling down $433 million in new inflows. The only place investors pulled back money in October was from leveraged long commodity ETFs, where they removed $201 million from the pool.
| Leveraged And Inverse ETFs Inflows: October 2009 |
| |
Leveraged Long Inflows: October |
Inverse Inflows: October |
Leveraged Long Inflows: YTD |
Inverse Inflows: YTD |
| U.S. Equity |
$93 |
$433 |
($6,554) |
$13,828 |
| International Equity |
$58 |
$57 |
$209 |
$893 |
| Real Estate |
$87 |
$93 |
$593 |
$1,363 |
| Fixed Income |
$5 |
$241 |
$26 |
$2,909 |
| Commodity |
($201) |
$180 |
$53 |
$614 |
| Currency |
$0 |
$63 |
$11 |
$269 |
| TOTAL |
$42 |
$1,066 |
($5,662) |
$19,875 |
| Source: NSX. Data through Oct. 31, 2009. All figures in $ US millions. |
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