Stock market ETFs continue to be impacted as investors appear to be spooked by changing monetary policy and limited boost from White House economic incentives.
US stock market
The long-awaited pullback following soaring equity markets may have taken its first step this week and low volatility ETFs have been impacted. Investors are concerned about inflation and rising interest rates, which have pushed up bond yields while stocks sink.
Investors have ploughed more than $1.6 billion into socially responsible ETFs over the last year, prompting industry commentators to predict that SRI and ESG (environmental, social and governance) ETFs will become the mainstream.
ETFs saw record-breaking inflows over the first two months of the year, but cracks are beginning to show as investors start to worry about the UK’s Brexit negotiations and US President Donald Trump’s ability to implement his reforms.