U.S. exchange-traded funds are on pace to attract at least $100 billion in inflows this year, according to State Street Global Advisors’ report, “2011 Mid Year SPDR ETF Outlook.” In the first six months of the year, ETFs saw $56.3 billion in net inflows, a 51% increase from the $37.3 billion in net inflows in the first half of last year.
The strategies that were most popular included fixed income, developed international markets and dividend strategies. Meanwhile, emerging markets and small-cap equities were less popular.
“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 SSgA. “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.”