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Sector ETFs Are Drained at Record Pace With ‘No Door Out’

  • Nearly $12 billion pulled from category ETFs so far in May
  • It’s the first time they have posted net outflows since 2020
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Traders Pull Out of Sector ETFs at Record Pace
Updated on

Traders are offloading sector-specific funds at the fastest pace on record as the looming bear market seemingly spares no corner of the equity world. 

Roughly $11.9 billion has been pulled from sector exchange-traded funds so far in May, putting the category on track for the biggest monthly drawdown on record, Bloomberg Intelligence data show. That’s the first time those ETFs have posted net outflows since September 2020.