Stock and bond ETFs associated with active trading saw heavy volumes and some withdrawals during October's turbulent market conditions, while investors put money into exchange traded funds that are more associated with buy and hold strategies.
Not surprisingly, October 2018 was a record month for U.S. bond ETF trading, according to data from BlackRock.
The iShares Core Aggregate Bond Fund (AGG), the largest bond ETF with $53 billion in assets under management, had $2.6 billion in withdrawals, about 5 percent of assets under management, according to ETF.com. It's a similar story with iShares Investment Grade Corporate Bond ETF (LQD), which also lost about 6 percent of its assets.
But here's something interesting: The second largest bond ETF, the Vanguard Total Bond Market (BND), had small inflows.
There's a similar trend with equity ETFs. The largest, the SPDR S&P 500 (SPY), saw outflows of about $5 billion, or about 2 percent of its assets under management. But SPY's biggest competitors, the iShares Cores S&P 500 (IVV) and the Vanguard S&P 500 (VOO), both had inflows of about 2 percent of assets under management.