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The Markets July 28, 2011
ETF Inflows On Pace to Exceed $100B in 2011
Against a backdrop of historically low interest rates and global
economic uncertainty, U.S. ETFs managed to attract $56.3 billion in
new inflows during the first six months of 2011.
Reported by PLANADVISER staff
This is up from $37.3 billion inflows during the first half of 2010. According to State Street Corporation’s 2011 Mid Year SPDR ETF Outlook, ETF investors increased their exposure to fixed-income, developed international markets, and dividend strategies while shifting away from emerging markets and small cap equities during this same period of time.
“With demand for income and non-correlated assets on the rise, a growing universe of professional and retail investors are using ETFs to access precise sources of return and improve the diversification of their portfolios,” said Kevin Quigg, global head of the SPDR ETF Capital Markets Group at State Street Global Advisors. “If flows remain on their current pace, 2011 will mark the fifth consecutive year that ETFs attract more than $100 billion in positive cash flows.”
Among the key themes highlighted in the 2011 Mid Year SPDR ETF Outlook report are:
- Growth of ETF industry asset flows by category
- Increased investment in ETFs that provide access to high dividend paying stocks
- Outlook for ETFs that track real assets and non-U.S. equities and bonds, as investors rethink asset allocation