Gold Overtakes Stocks As Investor Favorite — Massive ETF Inflows Signaled Market Jitters Last Week

Core Insights - Investors are shifting towards defensive strategies, favoring gold and fixed-income funds as U.S. equity ETFs face outflows, indicating a risk-off sentiment in the market [1][5]. Group 1: Gold Investment - The SPDR Gold Trust (NYSE:GLD) attracted $1.7 billion in inflows, nearly matching the $1.8 billion inflow of the SPDR S&P 500 ETF Trust (NYSE:SPY) [2]. - Gold prices surpassed $4,300 per ounce, resulting in year-to-date returns exceeding 60%, driven by inflation concerns, geopolitical tensions, and expectations of potential Federal Reserve rate cuts [2][5]. Group 2: Equity ETFs Performance - U.S. equity ETFs experienced a loss of $2.5 billion, reflecting declining confidence in growth stocks following a volatile earnings season [3]. - The Invesco QQQ Trust (NASDAQ:QQQ), SPDR S&P Regional Banking ETF (NYSE:KRE), and leveraged funds were among the most redeemed, with leveraged funds alone losing $631 million, indicating a significant retreat from riskier investments [3][4]. Group 3: Fixed-Income Investment - U.S. fixed-income ETFs saw inflows of $1.6 billion, primarily into the iShares U.S. Treasury Bond ETF (BATS:GOVT) and iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:LQD) [4]. - The combined inflows into gold and fixed-income assets suggest a clear trend towards safe-haven investments amid market uncertainty [4][5].