Investor optimism is showing up in big ways: U.S. exchange-traded funds (ETFs) have already taken in over $1 trillion this year, breaking 2021’s record with two weeks left to go.
November was especially striking, with daily inflows averaging $7.3 billion, fueled by expectations that the incoming Trump administration’s tax policies could boost growth. Equity ETFs saw the biggest gains, while fixed-income funds quietly kept their 34-month winning streak alive.
This surge in ETF flows signals that investors are putting cash to work, even as markets reach new highs. However, it’s essential to recognize that while inflows are increasing, they don’t necessarily predict future market movements.
This underscores why we maintain a diversified portfolio, ensuring you are well positioned to handle unexpected market movements.
Trillion-Dollar Trends
- We believe the preservation of capital is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
60-Second Breakdown: December 16, 2024
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
Best Invest Advise EVER!
Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.
