The third quarter of 2019 was all about the ebb and flow of trade tensions, global monetary policy easing and Trump’s impeachment talks. While markets were volatile on a flare-up in trade relations with China, widespread global monetary policy easing helped the broader market to a large extent.
Overall, the lost about 0.1% in Q3, the Jones added about 0.4% and the lost 1.9%. All-world ETF iShares MSCI ACWI ETF ACWI retreated 1.2% in the third quarter.
Let’s see how investors reacted to this situation and parked their money in the third quarter. The data is from etf.com (as of Sep 30, 2019).
S&P 500 Win
Despite subdued performance of the S&P 500,iShares Core S&P 500 ETF (IVV) and Vanguard S&P 500 ETF (VOO) garnered about $8.01 billion and $4.16 billion in assets in the third quarter. SPDR S&P 500 ETF Trust (ASX:) SPY (NYSE:SPY) raked in about $2.85 billion in assets.
Gold bullion ETF SPDR Gold Trust (P:) (TSXV:) raked in about $6.05 billion in assets.Gold prices have been on a tear of late, with GLD rallying 8% in the third quarter (as of Sep 27, 2019) against the S&P 500’s 0.1% loss. Heightened tensions related to the U.S.-China trade war in recent months led to the upside. Also, a barrage of rate cuts, Brexit uncertainty and the upcoming U.S. presidential election have played a crucial role in boosting the yellow metal (read: 5 Reasons to Buy Gold ETFs as Price May Touch $2000).
Low Volatility Prevails
The U.S. market was subdued, taking the spotlight away from low-volatility products. These apparently safe products, which normally do not surge in a bull market but offer protection in troubled times, were much in demand in the third quarter. Geopolitical tensions in the Middle East, tariff worries, overvaluation worries —