December had a strong showing of investor demand for ETFs as it posted the highest figure since January, a net inflow of $49.33 billion. The net equity ETFs were a major cause of this demand, along with the fixed income ETFs (Taxable bonds in particular) showing increased interest among investors.
Following a strong performance in the month of November, December had a show of strong investor demand for equity ETFs. Domestic equity ETFs demand decreased by an approximate value of 28% in comparison to the November figures, however, there was a larger inflow into the world equity ETF account, net issuance being approximately $16.98 billion, an increase in demand of 42%.
Breaking out of the pattern that saw steadily decreasing values of the hybrid ETF, its net issuance activity rose to a value of $88 million (from a previous $34 million).
Net issuance activity for fixed income ETFs exhibited strong demand, posting slightly improved figures when compared to November’s net fixed income ETF activity. The taxable bonds net activity showed an increase of 2%, however, the municipal bonds saw an increase of almost double the amount, generating $2.08 billion.
Commodity ETFs generated an inflow of money of $1.17 billion in the month of December, which is significantly higher than the previous months amount of $117 million.
Overall, the investor demand for ETFs resembled the previous months figure although slightly higher at $49.33 billion, approximately. This value was also derived similarly to that of Novembers, because the net equity ETF activity accounted for about 64.7% of the overall investor demand.