Despite the bad month of May for the markets, ETFs saw a huge inflow of new capita, according to Lazlo Birinyi’s Ticker Sense.
Exchange traded funds had a $4.1 billion inflow of new capital, despite the market pullback in May. Total assets fell by 5.7% to $1.1 trillion. ETF total volume rose 21% in May, averaging 1.7 billion shares traded per day, the highest level since November 2011. Only seven new funds began trading last month.
The chart below details the flow of funds into ETFs as well as the total assets for each month (the most recent month being the furthest to the left).
Photo: Ticker Sense
Ticker Sense also notes that bond funds were responsible for a majority of the inflow. This is particularly interesting, because yesterday Bloomberg reported that the third largest ETF that buys debt, PowerShares Fundamental High Yield Corporate Bond Portfolio (PHB), saw its biggest outflow since the fund’s inception in November 2007. While the inflow in May was up compared to the market, it will be interesting to see what the flow of funds looks like at the end of June.