Recovering from its $13.9 billion dip in June, total ETF assets bumped up by 1.3% to finish July with $1.1 trillion. Cerulli data showed that similar to mutual funds, US stock ETFs continue to shed the most assets, declining by $4.2 billion, or 0.8%, in July. The asset class’s share shrank from 47.7% of the pie in June to 46.7% in July.
Commodities and international stock ETFs’ monthly asset growth returned to positive levels in July (11.5% and 0.4%, respectively) after two consecutive months of decline. Commodities funds attracted its highest flows in 2011 with $3.8 billion; however, the category still remains in net redemptions year-to-date (-$1.5 billion).
With outflows of $21.2 million in July, balanced ETFs witnessed their first month of net redemptions in 2011. Leading outflows for the asset class was SPDR Barclays Capital Convertible Securities with $38.5 million, the ETFs’ largest month of redemptions since its inception (4/14/2009).
As the debt limit debate continued, investors shifted assets from equities to safe havens such as gold. SPDR Gold Trust grew the most assets of the top-10 largest ETFs in July, with 13.1% ($7.7 billion). Holding on to sixth place, iShares S&P 500 Index lost the most assets of the top-10 largest ETFs with $348 million.With $5.6 billion, State Street Global Advisors moved into the top position for flows for the first time in 2011. Only two of the 10-largest sponsors lost assets in July, ProShares and Direxion Funds (-$839 million and -$550 million, respectively), according to the Cerulli report.
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