In a startling about-face, investors pulled more money out of exchange-traded funds (ETFs) than they put in during the month of November, resulting in a net outflow of $238 million, reported the National Stock Exchange this week. However, at the end of the month year-over-year comparisons were still positive, with assets in U.S.-listed ETFs and exchange-traded notes (ETNs) up 12 percent over November 2010. Analysts blame continuing concerns about sovereign debt issues around the world for the exodus, and EPFR Global analysts reported that despite a “coordinated move by central bankers around the world to pump more liquidity into the [European] regions financial markets, investors appear reluctant to chase this rally”.
Gold and investment-grade corporate bonds remained popular in the wake of eurozone economic turmoil. Are you pulling out of ETFs?
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