Final 12 months was one other banner 12 months for inflows to exchange-traded funds. In actual fact, it was the second-best 12 months ever for ETF flows ($326.1 billion to be exact) and a report 12 months for fixed-income funds.
Most of final yearâÂÂs prime ETFs when it comes to new property added are what business insiders seek advice from as âÂÂpure betaâ merchandise. ThatâÂÂs a flowery means of claiming , doubtless capitalization-weighted funds that observe a well known benchmark, such because the S&P 500 or the Bloomberg Barclays Combination Bond Index.
Primary funds normally lead the annual flows race, however there are another areas of development within the business, together with socially accountable ETFs. Final 12 months, socially accountable ETFs, together with environmental, social and governance (ESG) funds, continued including to their ranks. Extra importantly, the group in new property in 2019.
Clearly, thatâÂÂs a small piece of the general ETF pie, however it does point out buyers have a rising urge for food for virtuous automobiles….