November’s net issuances of ETF suggest much greater investor demand, as the issuance increased almost five times over the past month. This was largely driven by the increase in demand of net equity ETFs and Taxable Bonds ETF, where the inflows were the largest.

 

Coming off a mediocre performance the past month, the month of November saw drastically increased demand in net ETF activity, driven by both world and domestic equity. World equity ETF activity rose by 121% to an approximate value of $11.97 billion and domestic equity ETF activity rose by 574%, to a value of $20.77 billion.

As the ETF summary for the month of October documented, the hybrid ETF net issuance activity continued to decrease, to reach a value of $34 million, a decline from the past month of 66%. This is the lowest value seen in over two years.

Net issuance activity for fixed income ETFs (Taxable and Municipal) showed promise as the taxable bonds ETF went from having outflows to having an inflow of $13.8 billion approximately. Along with this, municipal bonds generated an inflow of $1.06 billion.

Commodity ETFs generated an inflow of money in the month of November, however, less than it did in October, bringing in $117 million opposed to $336 million in October.

Overall, investor demand for ETFs was much higher than in the past month, an approximate value of $47.75 billion. This was primarily driven by the net equity activities, as it accounted for almost 68.6% of the total demand for ETFs in November.

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