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ETF Specialist

Markets and ETF Investors Plow Forward in May

Markets scraped forward while stock ETFs continued to haul in new money.

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Markets scraped forward in May, albeit more slowly than in recent months. The Morningstar Global Markets Index--a broad gauge of global equities--added 1.47% last month, bumping its year-to-date return to 11.02%. Bonds continued to inch upward, as interest rates settled. The Morningstar U.S. Core Bond Index climbed 0.27%, marking back-to-back monthly gains after three down months in a row.

A richly valued market hasn’t dampened investors’ appetite for stock exchange-traded funds. After pulling in $41 billion of inflows in May, stock ETFs have now racked up $295.4 billion of net inflows in 2021, well past their 2020 total. Bond ETFs notched another solid month of inflows, but the $18 billion they collected in May leaves them in the back seat after leading the way through much of 2020. 

Ryan Jackson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.