ETF Buyers Went On the Defensive During a Rough October

  • Investors added cash to more defensive areas during stock rout
  • Funds tracking minimum volatility, short-term debt saw inflows
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Flows into exchange-traded funds last month sent a bearish signal during all the market turmoil.

Investors put just $4.7 billion into U.S.-listed funds in October as the S&P 500 Index declined 7 percent, marking one of the worst months of the equity bull market. The flows were light compared to the $23 billion or more that funneled in during each of the three previous months.