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Investors Pile Into Emerging Markets In October
Written by Matt Hougan  -  November 10, 2009 12:13 PM
Related ETFs: EEM / IWF / IWM / LQD / QQQQ / SPY / SSO / TIP / UNG / VWO

 

Prior ETF Fund Flows Reports:

September 2009

 

 

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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