August Is Worst ETF Outflows Month Ever

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Sept. 5 (Bloomberg) -- Bloomberg's Eric Balchunas reports on the August ETF outflows with Matt Miller on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Let's talk about this headline.

The biggest month of outflows for etf's ever.

It's true.

One thing i find interesting about this month is when you take a step back and look at the entire summer, investors have been so spooked by tapering.

June saw 10 billion in outflows.

Now 17 in outflows.

Those wings are unprecedented, and shows you how concerned investors are of the fed tapering.

When you take a step back and look at the etf on a year to date, there are still $94 billion of inflows this year, which is on pace to break last yours record -- last year's record.

We have an index where you can look, is the data swayed by the size of some of the index members?


$14 billion of those $70 billion were outflows from the s&p 500 spiders.

Some of that data -- it's so big, it's hard to take sentiment.

What we found interesting in the equity space was europe.

Europe took in $4 billion etf's that track in europe.

That is massive.

Investors are buying into the european recovery story the ietf -- via the etf.

I thought that was interesting because you might expect massive outflows of equity etf's in the face of tapering, but other asset classes may be affected positively, right?

That's right.

When you go to the bond space, tapering means that longer maturing bonds are going to be hurt more.

They did see outflows.

The shorter duration bond etf's -- the vanguard short-term etf, for example -- are seeing inflows.

Anything over a duration of two or three years is seeing outflows.

Anything under is seeing inflows.

Investors are taking what are the biggest etf's out there?

That is the biggest one, and it is a great segue.

Gld used to be the second- biggest for a long time, and now it is the fifth.

Gld got killed this year.

It has moved to number five.

Thank you so much.

This text has been automatically generated. It may not be 100% accurate.


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