By Abhi Mathews CFA and Silvia Nishiguchi MA
Widespread gains in net ETF issuance set the stage for another solid week for the period ending September 28, 2016, with Domestic Equity ETFs recording the largest inflows seen over the last seven weeks.
According to data from The Investment Company Institute (ICI), net issuance of Domestic Equity ETFs for the week came in at $10.1 billion. Meanwhile, net issuance of World Equity ETFs still showed signs of weakness, with $1.3 billion in total redemptions, up slightly from the $956 million recorded the previous week.
Issuance of Fixed Income ETFs continued to thrive, as net inflows for Taxable Bond ETFs posted $2.8 billion for the week. On a lesser note, Municipal Bond ETF issuance slowed to $63 million, down from $125 million the previous week.
Net Commodity ETF issuance eased modestly to $325 million, down from $533. Meanwhile, investor demand for Hybrid ETFs improved, with net creations of $39 million, up from $20 million the prior week.
Overall, ETF investor interest for the week ending September 28, 2016 finished on solid footing, surging to nearly $12 billion from the $2.5 billion registered the previous week. The gains were driven largely by a sizeable turnaround in Equity ETF ($8.8 billion) as well as Fixed Income ETF ($2.8 billion) net inflows.