U.S. stocks just had their best September performance in 71 years, with the S&P500 up 8.8% in just the month. Here’s a clue to what helped make it happen.
More investor money flowed into ETFs for U.S. stocks during September than during January through August combined. In fact, as of August, there had been a net outflow of -$4.8 billion from U.S. stock ETFs year-to-date. Then just last month nearly $20 billion flowed into U.S. stock ETFs according to National Stock Exchange. Compared to what we had seen all year, it was truly a tidal wave of money, and is shown in chart below on the left.
In addition, inflows into international stock ETFs and bond ETFs continued, as shown in the two other groupings for comparison.