Top Ten June ETF Inflows

Investors worried about inflation and high fees poured money into commodities, inflation protected bonds, and cheaper versions of existing funds in June.

The United States Natural Gas Fund (UNG) was the month's big winner with as investors showered 1.7 billion dollars on the commodity futures fund, despite concerns about its tracking accuracy. iShares's TIP Bond Fund (TIP) saw the second biggest cash infusion, with the inflation-conscious sinking $942 million into the inflation protected US bond fund.

Vanguard's MSCI Emerging Markets (VWO) was in third place for a decidedly different reason, as institutional money fled en masse from the iShares MSCI Emerging Markets (EEM) to the VWO's lower expense ratio. Cost conscious investors also rewarded iShares S&P 500 Fund (IVV), to the detriment of State Street's SPY.

The ProShares Ultra Short S&P 500 Fund (SDS) also saw $577 million of inflows in June, a warning sign that investors are betting on an imminent market correction.

June's figures highlight the rising prominence of commodity ETFs, which carry unique tracking risks all investors should be aware of. Those worried about inflation should also be aware of the risk of TIPs, and consider broader alternatives such as the SPDR International Government Inflation-Protected Bond (WIP) .

Sources: National Stock Exchange.

Disclosure: None