September ETF Asset Roundup: Real Estate Rocks
Zacks Investment Research | Oct 03, 2016 12:16AM ET
True to its ill repute, September was an immensely volatile month. Early in the month, both equities and bonds went into a tailspin on a sooner-than-expected rate hike prospect. However, while the start was rocky, the end was smoother with a still-dovish Fed, an accommodative Bank of Japan and a surprise pre-accord on an oil output curb in November. All these events influenced investors as well as asset flows in the ETF world in the month (read: Hedge Your Portfolio Against Sell-Off With These ETFs ).
Let’s take a look at where investors poured their money in September and where they took it out from (as per asset flow report till September 27, 2016).
Real Estate Tops the Chart
Among the key events of September, one of the most notable was the real estate investment trusts or REITs, which were long part of the broader financial sector, getting a free status. Effective September 1, the S&P Dow Jones Indices and MSCI Inc., formed the new Real Estate Sector under the Global Industry Classification Standard (GICS) (read: What ETF Investors Need to Know About the New Real Estate Sector ).
This separation made the real estate sector even more attractive to investors and XLRE attracted about $3.21 billion in assets in September. A dovish Fed and lower long-term bond yields also played their role in drawing investors as real estate is a high-yielding sector.
Value ETFs Prevail
Uncertainties relating to the Fed decision, the outcome of the OPEC meeting during September 26–28 and the International Energy Agency’s (IEA) latest forecast that a global oil supply glut will remain 4 Low P/E Value ETFs & Stocks to Wait Out Uncertainty ).
Gold Mining Gains
Since volatility levels flared up in September and the Fed hike bets backtracked as soon as some downbeat economic data points started flowing in, gold regained its luster. VanEck Vectors Gold Miners ETF (NYSE:GDX) hauled in about $1.14 billion in assets in the month.
Currency Hedging Flops
Deutsche X-trackers MSCI EAFE Hedged Equity ETF Can Japan ETFs Soar Without Helicopter Money? ).
This curbed demand for the currency-hedged international equities ETF. Another currency-hedged ETF iShares Currency Hedged MSCI EAFE ETF HEFA saw about $476.9 million in assets gushing out.
Financial ETFs Ended Up Losing
Both Financial Select Sector SPDR Fund (XLF) and Vanguard Financials Index Fund (Financial ETFs Surged in August: Will the Rally Last? ).
Europe ETFs Out of Favor
With Eurozone economic growth slowing in Q2 from the prior period, investors did not seem too optimistic about iShares MSCI Eurozone ETF European Financial ETF in Focus on Deutsche Bank Woes ).
Get The News You Want
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.