Global economic uncertainty drives ETF demand

What happened: Global geopolitical tensions and economic uncertainties, including the war in Ukraine, Iran's situation, and rising inflation due to oil supply disruptions, have driven investors towards Exchange-Traded Funds (ETFs). The Dividend ETF from iShares, for instance, has seen increased demand, with assets under management reaching $30.5 billion as of February 2023.

Market impact: This uncertainty has led investors to seek refuge in safe, reliable stocks and ETFs. Dividend-paying stocks and ETFs like the iShares Select Dividend ETF (IDV) have become popular, as they provide steady income and are perceived as less volatile. This trend has pushed up the valuations of such ETFs and the companies they track.

What to watch next: Investors should keep an eye on the following catalysts: 1) The next earnings reports from major companies in the iShares Select Dividend ETF, such as AT&T and Coca-Cola, scheduled for April 2023. 2) The next inflation data releases, due in March and April 2023, which will provide insights into the trajectory of inflation and potential Fed policy changes. 3) Geopolitical developments, such as the situation in Ukraine and Iran, which could further impact global markets.