State Street Global Advisors today released its mid-year exchange-trade fund report, dubbed 2012 ETF & Investment Outlook: Sinking or Swimming?
The report reveals that US ETFs attracted more than $60 billion of inflows over the first five months of 2012, as 100 new funds were launched by 17 different providers, including one new entrant to the market. Amid signs the low interest rate environment will continue for the foreseeable future, demand for dividend/fundamental ETFs – the most popular category in 2011 – remained on top, as investors added $8.9 billion of inflows to these funds in the first five months of the year. Investors also increased their exposure to credit/corporate, government credit and high yield bond ETFs.
“With concerns over job growth in the US top of mind coupled with Europe’s debt problems, investors continue to put their savings to work in ETFs that provide alternative sources of yield,” stated Kevin Quigg, global head of ETF Strategy & Consulting at SSGA.
“If flows continue at this pace, 2012 will mark the sixth consecutive year that ETFs attract more than $100 billion in positive cash flows, which is remarkable given the trajectory of the markets during this period of time.”