The latest annual ETF and smart beta survey from EDHEC-Risk Institute has revealed almost all ETF investors plans to increase their use of smart beta strategies over the coming three years.
Investors are exiting defensive trades like utilities, min vol and consumer staples as VIX drops to record low. Yet these asset classes are still producing healthy returns.
investors placed more than $100 million in the long-only VIX ETN this year despite dire performance as they prepare for uptick in volatility.
US investors are dipping their toes back into European and emerging markets and even high-yield bonds as domestic rally slows and post-Brexit trade appeals.
Net inflows, in combination with positive market impacts, led to increased assets under management in the European ETF industry (€565.2 bn) for March, up from €550.3 bn at the end of February.
ETFs continued to enjoy strong inflows in March, adding to the record sales figures of the previous two months to make Q1 2017 the best quarter on record in terms of inflows. Developed market equities took in the bulk of the money.