ETF FLOWS IN MAY: STEADY AS IT FLOWS
ETF traders stayed invested over a turbulent month but showed increasing caution in their allocations. The shape of inflows shifted to include more defensive exposures and more bonds, but not outright stock selling.
THEMES OF THE MONTH
- A changing makeup of inflows, but many ETFs avoid outflows. Despite the poor market performance, some investors chose to stay invested and rotate from growth and value and into defensive exposures.
- Investors seek refuge from volatility. Inflows to dividend stocks and Min Vol funds show a preference for traditionally defensive allocations.
- Munis muster inflows thanks to tax harvesting. Investors are locking in capital losses after Muni’s underperformance in 2022.
MAY ETF FLOWS
Originally Posted June 10, 2022 – Flow & Tell with iShares | May 2022
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1 Marketplace, Interview with Federal Reserve Chair Jerome Powell by Kai Ryssdal. As of May 12, 2022.
2 BlackRock, Bloomberg. As of May 31, 2022.
3 Source: BlackRock, Bloomberg. As of May 31, 2022. ETF groupings determined by BlackRock, Markit.
4 Source: BlackRock, Bloomberg. As of May 31, 2022. Dividends represented by S&P 500 High Dividend Total Return Index (SPXHDUT Index). Broader U.S. stock market represented by S&P 500 Total Return Index (SPXT Index). Index performance is for illustrative purposes only. Index performance does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
5 Source: BlackRock, Bloomberg. As of May 31, 2022. Index performance is for illustrative purposes only. Index performance does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
6 Source: BlackRock, Bloomberg. As of May 31, 2022. ETF groupings determined by BlackRock, Markit.
7 Source: BlackRock, Bloomberg. As of May 31, 2022. Performance data represents past performance and does not guarantee future results. Investment return and principal value will fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance and standardized performance, click here.
8 Source: BlackRock, Bloomberg. As of May 31, 2022.
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