Hello! Market volatility remains elevated after last month outflows in exchange traded-funds listed in the U.S. for the first time in almost three years, according to State Street Global Advisors. In this week’s ETF Wrap you’ll see some of the bright spots in last month’s rough patch and this year’s market tumult.In... Hello! Market volatility remains elevated after last month outflows in exchange traded-funds listed in the U.S.
“It would concern me more if we saw a steady stream of outflows throughout the month for each of those products as opposed to a massive trade,” he said. “It doesn’t feel as if this is the masses moving away from equity ETFs.” Fixed-income flows Fixed-income flows were positive in April, but below their long-term average of $16 billion a month, with the vast majority of fixed-income ETFs trading at a loss this year, according to State Street.
Commodity ETFs attract capital Investors added capital to commodity ETFs in April, showing interest in precious metals and broad-based strategies, according to State Street. Check out the asset class flows for ETFs in the firm’s report: Exxon Mobil Corp. XOM and Bunge Ltd. BG and Nutrien Ltd. NTR have been the fund’s biggest winners on the long side this year, with Bunge and Nutrien each being a “food inflation play,” said Winter.
And that means the central bank is raising interest rates to tame the surge in the cost of living, which generally hurts valuations in the equities and bond markets, he said. But that’s also opened up many “opportunities on the short side,” said Winter.
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