The month of October saw decreased net equity ETF issuances compared to the previous month, with the domestic equity ETFs demand reducing by a staggering 88% compared to the previous month, yet the world equity ETF demand increased almost nine-fold compared to the last period.
The month of October saw conflicting interests in ETFs than seen in the previous period. As opposed to having a strong demand in the domestic equity ETF, there was only a net issuance of domestic Equity ETF of $3.08 billion, down from $26.33 billion in September. On the other hand, money was flowing into the World Equity ETF as it saw a net issuance of $5.4 billion in October. This was a significant increase than what was seen in September, since the net issuance was only $544 million. The domestic equity ETF value was the lowest seen over the past 6 months.
The net issuance for fixed income ETFs (Taxable and Municipal) saw an outflow of approximately $1 billion. This was driven by the outflow in the Taxable bonds, which had an outflow of $1.15 billion from a previous inflow of $6.8 billion. However, the municipal bonds went from returning an outflow to a slight inflow in October of $144 million.
Net hybrid ETF issuance in October was $99 million, a reduction in demand of about 23%, similar to the previous month’s reduction of 18%.
Commodity ETFs fared better than the past few months, posting a demand of $336 million as opposed to negative outflows as exhibited the months prior.
Overall, the net equity issuances were positive but significantly less than the previous months net issuances, along with the net issuance for fixed income ETF also being lower than the previous months accounted for figure. This gave a total investor demand for ETFs of approximately $7.9 billion.