We expect the factors that drove the popularity of sector investment last year could continue into 2018. Market conditions have benefited investors seeking to express their sector views through ETFs. In particular, throughout 2017, we saw a high dispersion of returns between the sectors.
Sector Dashboard: In the US, December was a strong month for flows into Energy Sector ETFs, with investors adding almost $2 billion in net inflows, whilst withdrawing more than $1 billion each from Health Care and Industrials funds. In Europe, flows had a more cyclical tilt, with investors extending the trend we saw in the second half of 2017 of increasing positions in cyclically exposed sectors and coming out of more defensive sectors. Read more.
Sector Snapshot: This sector flows snapshot is prepared by State Street Global Advisors' ETF Strategy Team in collaboration with State Street Global Markets. The data and analysis are based on sector flows from the month of November. The data provide investors with useful insights into recent sector flow patterns. It does not reflect the entire market. Read more.
The Powerhouse of Sectors: Driving portfolio performance using a sector approach. Read more.
