5 Top ETFs to watch
The race for the most cash inflows
The Vanguard FTSE Europe ETF (VGK) is leading the charge into European ETFs, which have seen assets increase 65 percent since mid-July, thanks to better economic numbers out of Europe and increased investor confidence. VGK is dominating the year's second half, sucking in cash like a giant vacuum cleaner. Since mid-July it has pulled in just under $5 billion of new cash, the second-largest amount going into any ETF during that time. It returned 14 percent during that stretch, while the S&P 500 has gained 5 percent.
If inflows into VGK stay strong, we could see an exciting race in the competition for the most inflows of 2013. The current leader is the WisdomTree Japan Hedged Equity ETF (DXJ), which attracted $8.7 billion in new money this year; VGK's year-to-date tally is $5.3 billion. DXJ has pulled in about $600 million since June, so its inflows may have topped out. We could see a tight race between an ETF that tracks Japan and one that tracks Europe, which would have been inconceivable 18 months ago.