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ETF Specialist

Halfway Through 2021, ETFs Are on Pace for Another Record Year

ETFs look poised to shatter last year's flows records.

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Markets rounded out a stellar first half of 2021 as they marched ahead in June. The Morningstar Global Markets Index (a broad gauge of global equities) advanced 1.11% in June, bumping its year-to-date return to 12.26%. Bonds continued to rise as well, as interest rates inched downward. The Morningstar U.S. Core Bond Index climbed 0.77%. That marked the benchmark’s third consecutive month of gains, though it has fallen 1.58% for the year to date.

Exchange-traded funds look primed for another banner year, as investors continued to pour in new money last month. After adding another $74 billion of inflows in June, ETFs have collected $469 billion so far in 2021. The $500 billion that investors dumped into ETFs last year set an annual record, but that’s likely to be short-lived. ETF inflows are on pace to blow past that figure, perhaps as soon as next month.

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