Record July ETF Flows Reflect Investor Optimism

State Street Global Advisors sees industry flows potentially topping $1 trillion in 2024.

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Jeff_Benjamin
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Wealth Management Editor
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Reviewed by: etf.com Staff
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Edited by: James Rubin

U.S. listed ETFs have added more than $104 billion in inflows so far in July, pushing 2024 totals over $500 billion, the earliest point ETFs have ever crested that mark and increasing the possibility that ETFs could top $1 trillion in inflows for the first time, according to State Street Global Advisors.

Despite Wednesday’s 2.3% pullback by the S&P 500 Index—the first one-day drop of more than 2% in nearly a year—the momentum entering the second half of the year can’t be ignored, said Matthew Bartolini, head of SPDR Americas Research at State Street Global Advisors.

“July is normally middle of the road in terms of inflows, averaging about $41 billion over the past five years,” he said.

Bartolini attributed the July surge to investor bullishness about a stock market that has only experienced four days 1.5% volatility or more —up or down—over the past year.

Through June this year, ETF inflows reached $420 billion, which was second only to the first half of 2021 when low interest rates, government stimulus checks and enthusiasm over the November 2020 Covid vaccine sent inflows to $460 billion.

ETF Inflows Set for Record Month?

In terms of the drivers behind inflows this month, which Bartolini said could be the best month on record for inflows, he cited a broadening of economic and fundamental growth that is spreading to strength across financials, industrials and small-cap sectors.

He cited, for example, the SPDR S&P Bank ETF (KBE) and the SPDR S&P Regional Banking ETF (KRE), which are each up more than 16% this month and have each accumulated more than $300 million.

etf.com: KBE three-month flows

“This is emblematic of a cyclical market trend, and you should be diversifying beyond the mega cap tech stocks because the market is broadening out,” Bartolini said, adding that the recent polling strength of Republican presidential nominee Donald Trump has “rekindled the idea of a Trump trade that could benefit cyclical areas.”

Along those lines, he referenced the SPDR Blackstone Senior Loan ETF (SRLN), which generated $250 million in one day last week and has already taken in $700 million in July and more than $2 billion this year.

“All of these macro things are happening really quickly, and people are going risk-on,” he said. “Up until Tesla’s earnings came out this week, the corporate earnings reports have been good with companies growing the top line and the bottom line.”

That general bullishness showed itself on Thursday when the markets quickly rebounded from the Wednesday selloff that was led by Tesla’s disappointing earnings report.

Jeff Benjamin is the wealth management editor at etf.com, responsible for coverage related to the financial planning industry. This includes writing, hosting podcasts, webinars, video interviews and presenting at in-person events.


Jeff is a veteran journalist with more than 30 years’ experience covering the financial markets. He has won more than two dozen national and regional awards for his reporting. He most recently worked as a senior columnist at InvestmentNews where he wrote about investment products and strategies, as well as the broader financial planning industry. Prior to that, Jeff worked as an analyst at Cerulli Associates where he researched and wrote reports on the alternative investments industry. Jeff also worked as a money management reporter at Dow Jones Newswires, where he covered the mutual fund industry.


Based in North Carolina, Jeff is a former Marine and has a bachelor’s degree in journalism from Central Michigan University.

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