Global ETFs Attracted $30 billion in April and Top Ten Most Popular

You have probably heard of exchange-traded funds (or ETFs, in abbreviated form) are becoming increasingly popular.

For those who are not familiar with ETFs. What is ETF? According to Fidelity, ETF is a basket of securities that you can buy or sell through a brokerage firm on a stock exchange. ETFs are offered on virtually every conceivable asset class from traditional investments to so-called alternative assets like commodities or currencies. In addition, innovative ETF structures allow investors to short markets, to gain leverage, and to avoid short-term capital gains taxes. Furthermore, ETFs are diversified vehicles, which means they flatten out idiosyncratic risks and, in turn, provide better risk-return profiles than individual stocks.

In a nutshell, ETFs offer investors an opportunity to gain exposure to a multitude of stocks at little cost.

In the sea of red in the equities market of late, certain ETFs  seem to have a track record of handling turbulent market environments with condescension. Why?  ETFs use “smart beta” strategies to allocate capital, which is a cutting-edge portfolio management technique that emphasizes cyclical portfolio diversification.

The global exchange-traded fund (ETF) industry attracted $31.42 billion in new investor capital in April, according to ETFGI, the world’s leading independent research and advisory firm. April’s inflows brought total ETF inflows so far this year to $337.11 billion. In addition, April recorded inflows for the 35th consecutive month.

For a year-to-date perspective, the top ten ETF inflow leaders have collectively attracted about $75 billion. Among them, Vanguard, the world’s second largest asset management company, has five seats in the top ten ETFs in 2022, with a total inflow of $46.64 billion.

RankingETFCodeInflows (USD Bil)+/- %  to date
1Vanguard S&P500 Index FundV0015.48-16.50
2Vanguard Total Stock MarketVTI10.87-18.10
3Vanguard Value Index FundVTV10.57-6.10
4ProShares Ultra Pro QQQTQQQ7.07-63.10
5SPDR Gold SharesGLD6.211.80
6Vanguard Total Bond MarketBND5.45-9.90
7SCHAWB US Dividend EquitySCHD5.28-6.40
8DIREXION Daily Semi Conductor Bull 3X SharesSOXL4.89-70.70
9iShares Short Treasury BondSHV4.79-0.20
10VANGUARD FTSE Developed MarketVEA4.27-16.80

In news on fund flows, the top five dividend ETFs have collectively attracted more than $12 billion in inflows this year, as investors flock to safe assets amid heightened market uncertainty.

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