ETF Investors See Potential in US

LOW COST FUNDS: Despite a five year market rally, and concerns about equity valuations, passive fund investors have been buying US equity ETFs

Emma Wall 3 July, 2014 | 3:35PM
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Last month, exchange traded funds worldwide saw $21 billion invested into US equities. This surge helped drive investment into equity ETFs to a high of $36.3 billion, the highest inflows recorded this year.

According to the BlackRock ETP Landscape Snapshot, so far this year, ETFs globally have recorded flows of $124 billion, which is a 25% increase on the first six months of 2013. Investment in the three months to the end of June totalled $91 billion, the best three month period since 2009. The most popular sectors of 2014 so far, have been fixed income and European and Japanese equities. US equities were not popular among passive investors at the start of the year, but have caught up significant ground over the last couple of months.

Emerging markets have fluctuated in favour year-to-date, but flows of $7.7 billion in June helped to bring total trades in 2014 into positive numbers.

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Emma Wall  is former Senior International Editor for Morningstar

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