Investors are lining up to buy ETFs that are rising in value thanks to surging interest in asset management.
The Vanguard Emerging Market ETF (VME) and the SPDR S&P Global Short-Term U.S. Index ETF (SGTU) are expected to go public later this month.
Both the VME and SGTU are gaining value.
Investors are lining out to buy the ETFs after seeing them climb in value over the past year, especially as the U.K. voted to leave the European Union, which has boosted the value of the ETF shares.
Vanguard recently boosted its price target on the VMI and SGE.
That’s a move that could give investors a more positive signal that the ETF is still a safe investment, said Michael Burt, an analyst at RBC Capital Markets.VMI is currently trading at about $24.50, and SGSU is currently at about 10 cents.
Investor sentiment on ETFs is still positive.
In a survey of 2,200 investors conducted last month by Fidelity Investments, 52% of those surveyed said they would be willing to buy a ETF in the near term, and nearly 60% said they plan to hold on to their investments for at least three years.
The VME is gaining in value, while SGTUs gains in value.
The SPDR ETF (SPDR) and SMI are up more than 70% over the last year, and the SGE ETF (STS) is up more that 30%.
The ETFs are in an important position as investors are still looking for ways to diversify portfolios.
The ETFs will help provide more diversification, said Burt.