© Reuters. SUBMIT PHOTO: The New York Stock Exchange (NYSE) in New York City, U.S., February 24, 2022. REUTERS/Caitlin Ochs/File Photo
By Suzanne McGee
(Reuters) – Incredible news from the United States ETF market in November! Properties reached a record-breaking $7.65 trillion, as confirmed by State Street (NYSE:-RRB- Global Advisors on Friday.
ETF financiers show robust confidence in November, cheered by factors like lower interest rates and renewed economic optimism, shared by Matthew Bartolini, head of SPDR Americas Research at State Street.
Investors certainly took some risks in the market and saw big returns, indicated by the largest monthly gain for the S&P 500 in November. On the other hand, the U.S. benchmark went through its most significant monthly decline in more than a year during the same month.
The inflow of high-yield bonds hit a record $11 billion, while sector funds saw an inflow of $7.5 billion in November. These are significant turnarounds compared to the previous months.
However, Treasury bond ETFs saw considerable outflows in November. According to Citi Research, a department of Citigroup, the iShares 3-7 Year Treasury Bond ETF saw outflows of $920 million, and the iShares 1-3 Year Treasury Bond ETF lost $1.1 billion.
Even though Treasury bonds experienced outflows, it was a great month for investors overall, yielding the highest returns for bonds and bond ETFs since 1980, as noted by Bartolini.
Finally, another 61 ETFs debuted in November, making it evident that the year is on track to set a new record for ETF launches, led by Todd Rosenbush, ETF expert at VettaFi.
