Unlike the past six months, the month of January saw net redemptions for ETFs, driven mostly by the domestic equity ETF. This outflow of nearly $24.86 billion more than offset the gains made in the world equity ETF, Taxable Bonds ETF and Commodity ETF.
The new year saw shifting patterns in net equity ETF data, as the domestic equity ETF saw a vast amount of outflow, approximately $24.86 billion, down 266% compared to the domestic equity value of December. Also, the world equity account was down 76% compared to the previous month, although it still generated an inflow of about $4.14 billion.
Net hybrid ETF issuance is steadily increasing after hitting the lowest value seen in over 2 years in November, posting an inflow of $99 million for the month of January.
Net issuance activity for fixed income ETFs was a total of $14.88 billion, a value lower than the previous months inflow of $16.15 billion. This lower inflow was driven by the decreased demand/outflow from municipal bonds, as $319 million was lost there, whereas the inflow of taxable bonds increased to nearly $15.2 billion.
Commodity ETFs demonstrated a strong performance, generating an inflow of almost $2.17 billion, which is up 85% from the month of December. This is a strong showing as it is the highest net value seen amongst commodity ETFs over the past 9 months.
Overall, the net investor demand for ETFs in the month of January saw an outflow of $3.57 billion. This was primarily due to the outflow from domestic equity ETF, as the remaining ETFs, with the exception of the municipal bond, saw money being generated.