Investing

ETF Investors Increase Equity Exposure

By Kevin McGuinness editors@plansponsor.com | June 25, 2013

June 25, 2013 (PLANSPONSOR.com) – A new report from State Street Global Advisors (SSgA) revealed that exchange-traded fund (ETF) investors increased their equity exposure during the first five months of 2013.

According to the report, "2013 Midyear SPDR ETF & Investment Outlook," with nearly $84 billion of inflows during 2013, investors have "found comfort in equity ETFs," though not at the expense of fixed-income funds, which were shown to have brought in $30 billion so far this year.

Other findings from the report include:

  • Broad market equity funds have seen the greatest flows on an absolute basis, with over $25 billion coming in;
  • Dividend equities added $12.6 billion worth of inflows; and
  • The beta category, which includes low-volatility ETFs, is growing and saw $6.8 billion of inflows representing over 47% of 2012 assets.

Looking ahead, David B. Mazza, the author of the report and head of ETF Investment Strategy for SSgA, said, "With markets rallying, volatility and correlations across markets have decreased significantly from recent highs seen last summer. In fact, both measures are well below their three-year averages. Looking ahead to the remainder of 2013, this is a welcome sign for investors as the market begins to be driven less by macroeconomic influences and more by events at the micro level across asset classes."