More than $31bn has been ploughed into Exchange Traded Funds (ETFs) in just one week – despite a plunge in the value of tech stocks.
The $31.6bn ETF inflow for the week ending Wednesday June 14 came just days after major tech stocks took a tumble of roughly 3.5%.
The previous record high for ETF investment was $26.5bn for the week to April 26, according to US data analysts EPFR Global, quoted in the Financial Times.
The total amount of cash invested in January and February this year was $131bn, prompting fears of a bubble.
But UK stockbroker Hargreaves Lansdown says the dramatic inflow is the result of an ongoing trend towards passive vehicles, on the back of improving sentiment on the global economy.
“There have been a few rocky days in the market over the last week or so both in the US and over here, but looking a little bit further back the market is still riding pretty high and the reason for that, by and large, is improved sentiment to the global economy, and across the globe interest rates are still quite low,” said senior analyst Laith Khalaf.