By Abhi Mathews CFA and Silvia Nishiguchi MA
After the largest single-week slump over the last 3 months, net ETF issuance for the week ending September 21, 2016 staged a solid recovery, with Fixed Income ETFs leading the change.
According to data from The Investment Company Institute (ICI), net issuance of Taxable and Municipal Bond ETFs for the week was at approximately $3.6 billion, up significantly from the previous week’s outflows of $2.5 billion.
The week ending September 21, 2016 saw Equity ETFs posting net outflows of $1.7 billion—the first time since early June. The outflows were attributed to both World and Domestic Equity ETFs, with redemptions of $956 million and $775 million, respectively.
Net Commodity ETF issuance ended the week on a high note, coming in at $533 million, while Hybrid ETF demand continued to strengthen with net inflows of $20 million.
Despite moderate net outflows in Equity ETFs, overall investor demand for ETFs ended the week back into high gear, at a healthy $2.5 billion. The pick-up in ETF investor interest is largely due to strength in Fixed Income ETFs at nearly $3.6 billion and, to a lesser extent, commodity ETFs at $533 million.