Most Loved And Hated ETFs Of 2019

The global stock market logged in the best year since the financial crisis a decade ago, shrugging off trade tensions and slowing growth in major economies. The stocks added more than $17 trillion in market capitalization in 2019, according to Deutsche Bank calculations.

Global easing policies, U.S.-China trade deal optimism and political developments around the globe have raised the appeal for riskier assets. As such, overall ETFs gathered about $326.3 billion in 2019, per eftf.com, marking the second-largest annual inflow, just behind the $476.1 billion haul in 2017. U.S. fixed-income ETFs led the way, accumulating $135.4 billion followed by inflows of $130.2 billion for U.S. equity ETFs and $32.4 billion for international equity ETFs.

U.S. Equity ETFs: A Hot Spot

Stock markets surged across various countries, with the U.S. market leading the way. In fact, the major bourses logged in the best performance since 2013. The rally was powered by upbeat data, Fed rate cuts, stronger-than-expected earnings and positive developments in trade. The U.S. economy is on a strong growth path with job additions at the fastest pace this year and unemployment dropping to the lowest level since 1969. The housing market is also clearly showing signs of a strong recovery with lower mortgage rates and slower home price growth acting as catalysts.

As a result, Vanguard Total Stock Market ETF ((VTI - Free Reportwas the most loved ETF of 2019, pulling in nearly $15.4 billion in capital. This fund offers exposure to broad U.S. stock market. iShares Edge MSCI Min Vol USA ETF (USMV - Free Reportand Vanguard S&P 500 ETF (VOO - Free Reporthave pulled in more than $12 billion each. USMV targets stocks that have lower volatility characteristics relative to the broader U.S. equity market while VOO invests in stocks in the S&P 500 Index.

Fixed Income ETFs Attracts

The fixed-income world gained investors' love amid persistent stock market volatility brought in by trade war, global growth concerns, recession fears and flattening yield curve. Four U.S. fixed-income ETFs and one international fixed income ETF claimed spots in the top 10 inflows list: Vanguard Total Bond Market ETF (BND - Free Report)iShares Core U.S. Aggregate Bond ETF (AGG - Free Report)iShares MBS ETF (MBB - Free Report)iShares U.S. Treasury Bond ETF (GOVT - Free Reportand Vanguard Total International Bond ETF (BNDX - Free Report). These funds have accumulated $9.7 billion, $8.9 billion, $8.3 billion, $8.3 billion and $11.1 billion, respectively.

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