Bullish Investors Plowed $16.8 Billion into S&P 500 ETFs in July

silver bullIn another sign that June’s Brexit scare was just a temporary blip on investors’ radars, just-released data shows that a combination of three popular S&P 500 ETFs saw enormous inflows in July.

The data, compiled by ETF.com, indicates risk-hungry equities bulls poured $16.8 billion into the three biggest S&P 500 ETFs last month alone. These ETFs are the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), iShares S&P 500 Index (NYSE:IVV), and Vanguard 500 Index Fund (NYSE:VOO).

Big July Inflows

ETF July Inflows
SPY $13.7 billion
IVV $1.9 billion
VOO $1.2 billion

Although these ETFs all track the same exact index, they offer differing levels of liquidity and expense ratios. Their performance tends to be pretty much the same, however:

SPY-IVV-VOO-2016-08-31
Chart: Google Finance

There are actually three lines on the chart above, but the performance of these funds is so similar, they overlap completely over a long enough time frame. As you can see, all three have provided returns of 6.2% year-to-date.

As investors’ risk appetite continues to grow post-Brexit, these three ETFs are all attractive options if you’re looking to go long U.S. large and mid-cap equities. If you’re planning to buy and hold for a long period of time, however, IVV and VOO are better choices than SPY because they have lower expense ratios. SPY’s expense ratio is 0.9%, while IVV and VOO have expense ratios of 0.7% and 0.5%, respectively.

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