Top ETFs that Saw Influx of Assets in July: Insights from VettaFi Head of Research Todd Rosenbluth

In July, the ETF market saw a significant influx of assets, with investors pouring in a total of $61 billion. While many of the largest known ETFs saw increased investment, there were also several lesser-known ETFs that flew under the radar for a significant period of time but saw unexpected demand in July.

Todd Rosenbluth, VettaFi Head of Research, commented on the exciting trend, stating that it’s thrilling to dig into these up-and-coming ETFs. He highlighted the investing potential for ETFs in the fixed-income and AI landscapes, as well as funds for hedging against inflation.

Among the top picks that saw increased demand in July was the JP Morgan USD Emerging Markets Sovereign Bond ETF (JPMB). This ETF provides exposure to emerging market high-yield fixed income, with a focus on countries like Brazil, Oman, and the Dominican Republic. Rosenbluth noted that investors embraced risk in July, leading to strong inflows into this ETF.

Another ETF that gained traction in July was the Global X Artificial Intelligence and Technology ETF (AIQ). This ETF offers exposure to companies in the AI and technology space, including heavyweights like Amazon and Alphabet. Rosenbluth emphasized the long-term potential of AI as a mega trend and highlighted the benefits of diversification that an ETF like AIQ provides.

Additionally, the T. Rowe Price Active Income ETF (TOTR) and the iShares Treasury Long-Term ETF (TLTW) also saw increased interest from investors. TOTR, an actively managed fixed income ETF, has outperformed traditional bond funds like AGG, showcasing the appeal of active management in the current market environment. TLTW, on the other hand, offers a buy-write strategy to dampen risk and volatility in long-term Treasury exposure, making it an attractive option for investors seeking downside protection.

As investors navigate the changing market landscape, there has been a rotation away from short-term-oriented ETFs like SHY, with a focus on higher rewards despite increased risk. Overall, the ETF market in July demonstrated a mix of traditional and emerging investment opportunities, with investors showing interest in a diverse range of asset classes and strategies.

With the ETF market continuing to evolve, investors are presented with a wide array of options to consider for their portfolios. As the industry adapts to changing market conditions and investor preferences, staying informed and exploring new opportunities will be key for maximizing returns and managing risk in the current environment.