ETFs Reverse Course in September

Investors poured an additional $6 billion into U.S. exchange-traded funds (ETFs) in September, after withdrawing approximately half a billion in August.

The data from Strategic Insight, an Asset International company, show that taxable bond ETFs led the way in flows in September with $4 billion in net inflows, followed by equity ETFs with roughly $1.7 billion in net inflows. In the third quarter of 2011, total net inflows to ETFs were nearly $19 billion, down from $27 billion in net inflows in Q2 2011.   

Because of equity market performance, ETFs (including ETNs) ended September with roughly $970 billion in total assets, the first time that ETF assets ended a month below the $1 trillion mark since November 2010.   

“Despite fluctuations in the markets, net flows to ETFs have been fairly consistent. We continue to believe that ETFs in the U.S. will reach $2 trillion in assets before 2016,” said Loren Fox, a Senior Research Analyst at Strategic Insight, in a press release.  

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