Bond ETFs saw more than $96 billion of inflows last year while factor-based funds added a record $86 billion, data compiled by Bloomberg show. Low-volatility stock ETFs -- which try to buy equities with a more stable price -- proved particularly popular, adding more than $9.5 billion
“As market volatility set in, institutions like insurers and pension plans were much more intentional about seeking factor strategies,” said Holly Framsted, head of U.S. smart beta for BlackRock’s ETF business. “More recently we’re seeing investors evolve ETF applications in more sophisticated ways to actively express market views or to tilt toward precise factor exposures.”
This article was provided by Bloomberg News.