Consider the Less Expensive Defensive Trade
Summary of 2018 ETF Flows and Trends¹

  • Total US-listed ETF assets dropped to $3.40 trillion at the end of 2018, a -1.2% decline from the end of 2017.  Total estimated net flows for the year were $313 billion, roughly $152 billion slower than 2017's record-setting flows.  The slight dip in assets was due to performance, not capital flows.
  • Total assets increased in four ETF categories, including Municipal Bond ETFs (+21.3%), Taxable Bond ETFs (+12.4%), Allocation ETFs (+0.8%), and US Equity ETFs (+0.4%).
  • US Equity ETFs had the strongest estimated net inflows in 2018 (+$143 billion), followed by Taxable Bond ETFs (+$91 billion), and International Equity ETFs (+$60 billion).  No ETF category had estimated net outflows in 2018.

¹ Source: Morningstar, as of 12/31/18. Includes all US-listed exchange-traded funds, exchange-traded notes and other exchange-traded products. All net inflow and outflow numbers are estimates based on information provided by Morningstar.

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Posted on Tuesday, February 12, 2019 @ 8:19 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.