U.S. Equities Shine in ETFs, Like "Vito the Pug" of the Market

Image Credit: etf.com

 

U.S. equities outperformed global markets last month with a 4% gain, driving a record $122 billion into U.S. stock ETFs.

This performance has led U.S. stocks to be likened to "Vito the Pug," the winner of the American Kennel Club's National Dog Show, according to State Street’s Head of Americas ETF Research, Matthew Bartolini. U.S. equities have surged 26% this year through November, vastly outperforming the 5% gain of non-U.S. stocks, which suffered a 1% decline last month after President-elect Donald Trump proposed new tariffs on goods from China, Mexico, and Canada.

U.S. stocks have benefited from stronger corporate earnings, improved margins, and better balance sheets, with expectations of continued growth over the next year. Exchange-traded funds (ETFs) are on track to pull in a record $1.2 trillion this year, surpassing the previous record of $909 billion set in 2021.

 This surge is partially fueled by $270 billion in mutual fund outflows, which have boosted ETF inflows. In November alone, $60 billion of the equity inflows went into passive, low-cost ETFs like the SPDR S&P 500 ETF Trust (SPY), while active equity ETFs attracted $20 billion, and active fixed income ETFs gained $14 billion.

Bond funds also saw strong inflows, with $29 billion invested in November, bringing the total for the year to a record $279 billion.

 

 

 

 

Paraphrasing text from "etf.com all rights reserved by the original author.