Investors Turn to Stock Picking at the Expense of S&P 500 Funds
- Funds saw record inflows in April, led by healthcare and tech
- Meanwhile, exposure to broad-based ETFs lost relative momentum
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The intense market volatility spurred a surge in popularity for ETFs that target single U.S. stock industries.
After taking in a record $18.6 billion last month, those exchange-traded funds kept luring cash in early May, data compiled by Bloomberg showed. In only two trading days, they added another $786 million. Meanwhile, the three biggest S&P 500 ETFs all had outflows in April -- only the second month that’s happened since they started trading, according to a Bloomberg Intelligence report.