July marked an unprecedented milestone for exchange-traded funds (ETFs), with inflows hitting a record $127 billion, according to State Street Global Advisors. That not only made it the best July on record, but also the second-largest monthly inflow on record.
Matt Bartolini, head of SPDR Americas research, discussed the factors behind the rally on CNBC’s “ETF Edge” on Thursday. “Part of this is just the market,” Bartolini explained. “Investors are putting money that’s been sitting on the sidelines for years. We’re seeing a concerted effort to continue buying into this rally, along with a broadening of market participation.”
Bartolini also noted a narrowing gap between growth and value ETFs. “It’s not just about technology anymore,” he said.
A Trillion-Dollar Milestone for ETFs?
BTIG’s Troy Donohue believes the ETF industry could reach a significant milestone by the end of the year, provided macroeconomic factors during the election season do not discourage investors.
“It’s been a great start to the year,” said Donohue, head of U.S. portfolio trading at BTIG. “This could be the first trillion-dollar year for the ETF industry.”
