The seemingly unending growth of the ETF industry has hit a snag over the past two months, as turmoil in the U.S. stock market—the most popular area that ETFs offer exposure to—pushed investors to reallocate.
Exchange-traded funds had negative flows over the month of March, redemptions that were almost entirely due to outflows from large-capitalization U.S. equity funds. This is the second straight month of outflows for ETFs, and according to data from State Street Global Advisors, that marks the first set of back-to-back outflows since 2008, during the worst of the financial crisis.
