Investing

ETFs Increase by $26B in October

By Kevin McGuinness editors@plansponsor.com | November 13, 2013

November 13, 2013 (PLANSPONSOR.com) – U.S. exchange-traded funds (ETFs) posted more than $26.6 billion of inflows during the month of October, increasing its year-to-date inflows to $152.9 billion.

The most-recent “ETF Snapshot” report from State Street Global Advisors also found Europe experienced ETF inflows of $4 billion during October, increasing its year-to-date inflows to $13.5 billion. The Asia-Pacific region had inflows of $4.8 billion, increasing its year-to-date inflows to $12.7 billion.

In terms of global performance by asset class, MSCI AC World IMI increased 3.9%, while MSCI EAFE gained 3.4%. Emerging markets returned 4.9%, while emerging markets small cap rose 4.4% The U.S. large cap, mid cap and small cap markets were all positive, increasing by 4.6%, 3.7% and 3.6%, respectively. The global aggregate gained 1% and the global treasury ex-U.S. grew 1.1%. The U.S. high yield, the U.S. aggregate, the U.S. Treasury and the U.S. corporate bond markets were all positive in October. The U.S. real estate investment trust (REIT) market was up 4.1%. Commodities were negative, with the Dow Jones-UBS Commodity Index losing 1.5% and gold dropping 0.2%.

Global ETF inflows topped $35.3 billion in October. Equity had inflows of $36.4 billion. The equity inflows were driven by the developed large cap category, with $8.3 billion in inflows, and the developed mid cap category, with $6.7 billion in inflows. Fixed income had inflows of $1.1 billion, which were driven by inflows of $2.9 billion into developed markets corporate high yield.

The top three families in the global ETF marketplace were BlackRock, State Street and Vanguard. Collectively, they account for approximately 71% of the global ETF market.