Stock Havens Cost More Than Ever, Right When Investors Need Them
- Investors in ETFs continue to favor defensive sectors
- Low-volatility funds saw record inflows last quarter
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Some of the highest valuations in years can’t keep exchange-traded fund investors from hunkering down in the safest pockets of the U.S. equity market.
As the S&P 500 Index began October with its third week of losses, utilities ETFs took in $726 million, the most of any industry, data compiled by Bloomberg through Oct. 3 show. Investors had already piled into defensive funds in the three months ended September, with ETFs of real-estate and consumer-staples companies adding more than any other equity sectors, while those focused on avoiding volatile stocks saw record inflows.