Money Poured into Stock ETFs in October - BlackRock

   By Chris Dieterich 
 

NEW YORK--Investors continued to pile into stock exchange-traded funds last month.

According to preliminary data from asset manager BlackRock Inc. (BLK), the bulk of the cash was directed at U.S. stock ETFs; some $20.9 billion went into U.S. stock ETFs last month through Oct. 30, compared with $12.9 billion in September. Monthly inflows had set a record $30 billion in July, as worries faded that the Federal Reserve would pull back on its easing efforts this year.

Among individual ETFs, the biggest October beneficiaries of investor demand for stocks were the $159 billion SPDR S&P 500 (SPY), which soaked up $5.8 billion. The $21 billion iShares Core S&P Mid-Cap (IJH) was second, with $3 billion.

Meanwhile, the pace of money heading into bond ETF is slowing, a reversal of the trend that had dominated financial markets since the 2008 financial crisis.

Investors are also directing money into stock ETFs focused on the other side of the Atlantic. European stock ETFs that trade in the U.S. took in $4 billion last month. October marked the third big month in a row for Europe stock ETFs, which absorbed $4.1 billion in September, and set a record with $4.7 billion in August.

The $12 billion Vanguard FTSE Europe ETF (VGK) absorbed $1.3 billion, while the $6.7 billion iShares MSCI EMU (EZU) took in $970 million.

Single-country European stock ETFs raked in $400 million in October. Some $180 million headed into the $792 million iShares MSCI Spain (EWP) to lead the way.

Write to Chris Dieterich at [e-mail]

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