ETF Flows Bounce Back – Especially EM

via ETF.com, some interesting info on ETF flows during the month of April:

Investors poured more than $20 billion into U.S.-listed ETFs in April—a third more than in the entire first quarter—pushing total ETF assets to a record high of $1.762 trillion. The bulk of those assets landed in equities funds, particularly emerging market ETFs…Funds like the iShares MSCI Emerging Markets ETF (EEM) and the Vanguard FTSE Emerging Markets ETF (VWO) were among the month’s most popular strategies, raking in $3.9 billion and $651 million, respectively. EEM was the top gainer in the month.

In a broader sense, the pace of flows into ETFs this year is lagging that of 2013, when total net inflows topped $188 billion for the year—a record. So far this year, investors have poured slightly more than $35 billion into U.S.-listed ETFs, about a third of which landed in fixed-income funds.

The record assets of $1.762 trillion are up 3.5 percent year-to-date from $1.701 trillion, and 18.2 percent above the $1.490 trillion at the end of the same year-earlier month of April 2013.

The thing that jumps out at me is the newly-valuation conscious flows we’re seeing toward emerging markets. A lot of ETF activity is driven by financial advisors and many advisors pride themselves on the ability to ignore recent performance and focus their allocations on what might come into favor down the road.

Emerging markets have spent the last one, three and five year periods lagging behind US and developed market equities – with plenty of good reason. They’re coming back into vogue before there’s any news or reason for them to be. The answer is in the relative discounted multiples these stocks and countries sell for after so much time in the doghouse.

Source:

April Flows: Emerging Market ETFs Shine (ETF.com)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. dank carts commented on Oct 18

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2014/05/01/etf-flows-bounce-back/ […]

  2. DevOps commented on Jan 12

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2014/05/01/etf-flows-bounce-back/ […]

  3. Revell 02157 manuals commented on Jan 20

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2014/05/01/etf-flows-bounce-back/ […]