Loading ...Record-Shattering Flows Into Stock ETFs Leave Bond Funds in Dust
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After lagging bond funds for most of 2020, ETFs tracking equities lured a record $81 billion last month, bringing their total haul for the year to $196 billion, according to data compiled by Bloomberg. That catapulted them ahead of fixed-income funds, which attracted $17 billion and have a tally of $192 billion.
Equity exchange-traded funds have overtaken their fixed-income peers for inflows this year thanks to November’s epic stock rally.
Investors are redeploying cash into stocks following a series of breakthroughs in the race for a Covid-19 vaccine and amid mounting optimism for growth. Beaten-down areas of the market have benefited the most, with small caps and energy shares posting their strongest months on record in November. Global equities notched their largest monthly gain since at least 1988, while multiple major benchmarks are at or near all-time highs.f