Multi-factor ETFs have gained solid inflows since the February dip as investors are keen to diversify and avoid market timing.
Technology-focused exchange traded funds are leading the way compared to other US sectors following the market rebound. Of the 11 sectors in the S&P 500 Index, tech is at the top of the list in terms of inflows.
High yield ETFs have been experiencing substantial outflows over recent weeks, as investors’ attitudes towards riskier bonds have cooled following a setback in the asset class’s performance.
The VIX index, which measures equity market volatility, has been at ‘exceptionally’ low levels since the start of the year, but ETF Securities warns this is not factoring in market risks that could cause a sell-off in the near future. The firm suggests volatility should be at much higher levels than the index is indicating.