In July, ETF inflows reached a new record high, according to State Street Global Advisors.
It's a July for the record books.
Not only did July see the best inflows into exchange-traded funds with $127 billion, but it was also the second-largest monthly inflow ever, according to State Street Global Advisors' head of SPDR Americas research.
"Matt Bartolini of CNBC's "ETF Edge" stated on Thursday that "a portion of it is simply the market." He explained that investors are deploying cash from the sidelines, which has been accumulated over time. Bartolini noted that investors are making a deliberate effort to continue buying into the rally. Additionally, he observed a broadening in the market depth, with rotation taking place."
Bartolini also points to a narrowing spread between growth and value-oriented ETFs.
"It's not so heliocentric towards tech," he said.
First trillion-dollar year for ETF industry?
Troy Donohue of BTIG believes ETFs will reach a significant milestone by the end of the year, provided that macro factors during the election season do not cause too much hesitation among investors.
"Donohue, BTIG's head of Americas portfolio trading, stated that the ETF industry could experience its first trillion-dollar year."
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