Merchants work on the ground of the New York Inventory Alternate (NYSE) in New York, U.S., on Wednesday, April 17, 2013. U.S. shares sank, erasing yesterday’s rally, amid losses in industrial metals and disappointing outcomes from Financial institution of America Corp.
Scott Eells | Bloomberg | Getty Photos
By one measure, the shift to passive investing from lively is slowing down.
With only one week left in 2019, Financial institution of America stated Tuesday its purchasers have purchased extra shares in particular person corporations this 12 months than exchange-traded funds for the primary time since 2008.
The financial institution’s information confirmed its purchasers purchased about $38 billion value of single shares in 2019, exceeding the $25 billion value of ETFs they bought. From 2008 to 2017, Financial institution of America’s purchasers persistently offered particular person shares and piled into passive automobiles.
Whereas information from only one store may not be consultant of the entire business, it may very well be an indication that some traders are in search of extra safety and lively administration because the record-long bull market headed to its 11th 12 months.
Lively methods have suffered for greater than a decade as cheap investments have loved a increase within the present financial enlargement. For the reason that inception of the primary ETF — the S&P 500 SPDR — in 1993, the U.S. market has grown quickly to a $4.three trillion juggernaut, based on Morningstar.
Financial institution of America beforehand…