ETF Roundup: 2019 Haven Trade Unwinds, Record Flows in ESG Funds

The video discusses recent market trends, highlighting a shift towards a 'risk on' attitude with increased interest in cyclical sectors and value stocks. Experts Dan Egan and Vildana Hajric provide insights into client behavior, economic growth, and ETF trends. The discussion covers the impact of US-China trade deals, Federal Reserve rate cuts, and the rise of ESG funds. The video also explores investor behavior, year-end strategies, and the growing appeal of international bond ETFs like BNDX.

What does the outflow from SPY, GLD, and TLT suggest about investor sentiment?

• Investors are focusing on international markets.

• Investors are increasing their cash holdings.

• Investors are shedding safe haven assets.

• Investors are moving towards safer assets.

How are retail investors reacting to the Fed's rate cuts according to Dan Egan?

• They are withdrawing from the stock market.

• They are moving towards riskier investments.

• They are investing more in high-yield savings accounts.

• They are increasing their cash reserves.

What is a key feature of the Vanguard International Bond ETF (BNDX) that makes it appealing?

• It focuses on US bonds only.

• It offers exposure to emerging markets.

• It has a high expense ratio.

• It includes a currency hedge.

What is driving the rotation from safety trades to riskier market segments?

• Decreasing economic growth.

• Increased inflation rates.

• Improved economic growth and trade deals.

• Rising interest rates.

What trend is observed in ESG fund inflows?

• They are declining compared to last year.

• They are on pace for a record year of inflows.

• They are experiencing massive outflows.

• They are stable with no significant change.

What is a common criticism of ESG investors according to the discussion?

• They are not interested in personalized investment options.

• They focus too much on short-term gains.

• They are considered slacktivists who may leave if performance drops.

• They are highly committed to their investments.

What is a potential reason for mutual fund investors to adjust their portfolios at the end of the year?

• To reduce their holdings in ESG funds.

• To avoid capital gains distributions.

• To increase their exposure to US stocks.

• To invest more in high-fee mutual funds.