It was a record-breaking July.
State Street Global Advisors found $127 billion in flows into exchange-traded funds. Not only was this the best July ever, the firm’s head of research for the Americas at SPDR noted that it was also the second-largest monthly inflow ever.
“Part of it is the market,” Matt Bartolini told CNBC.ETF Edge“Thursday. “We’re seeing investors allocating cash on the sidelines. There’s been a lot of cash accumulation over the years. We’re starting to see a real concerted effort by investors to continue buying into this rally. We’re also seeing market depth expand in terms of rotations.
Bartolini also noted that the gap between growth ETFs and value ETFs is narrowing.
“With technology, it’s not so day-centric,” he said.
The ETF industry’s first trillion-dollar year?
BTIG’s Troy Donohue believes that as long as the macro factors of the election season don’t make investors too hesitant, ETFs will reach a major milestone before the end of the year.
“This is a great start to the year,” said Donohue, head of Americas portfolio trading at BTIG. “(This) could be the first multi-trillion-dollar year for the ETF industry.”
