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ETFs Might Be a Bad Way To Play The Infrastructure Boom

When the president-elect pledged to facilitate a $1 trillion infrastructure-spending binge, exchange-traded funds with “infrastructure” in their name seemed like a sound way to cash in.

But that narrative was upended on Wednesday when the biggest product in that category — the iShares Global Infrastructure ETF (IGF) — suffered over $161 million in outflows; its largest one-day withdrawal on record.

IGF US Equity (iShares Global In 2017-01-05 09-38-40
Source: Bloomberg

Those hunting for the proximate cause of this exodus are less likely to find it in the taunts Donald Trump lobbed at Senate Democratic leader Chuck Schumer, who has expressed support for the future president’s infrastructure plan, than in the realization that with these funds, the wrapping paper often belies the present.

Read the rest of the article at Bloomberg


2016 Was a Record Breaking Year For ETFs

Exchange traded funds tracking major stock indexes were mixed Thursday morning as investors digested mixed news on job cuts and jobs growth.

SPDR S&P 500 (SPY) dipped 0.4% on the stock market today in early trade. This ETF, a proxy for the broad U.S. market, has shuffled sideways since posting an all-time high of 228.34 on Dec. 13.

ETF inflow in 2016 set a record at $284 billion, $39 billion more than the previous record set in 2015, according to a new report from State Street Global Advisors.

Highlights from the report include:

  • Fixed-income ETFs gathered more than $90 billion in assets, nearly doubling the 2015 total of $58 billion. Bond-based funds surpassed the 2015 record in August, and added $30 billion more to close out the year.
  • Equity ETFs fell short of the record $196 billion inflow in 2013, but broke the record for highest monthly flow in November with $49 billion of net inflow — and broke the record again in December, attracting over $58 billion.

Read the rest of this article at Investors Business Daily