- Equity demand from ETFs will surge to a record in 2018, Goldman Sachs predicts.
- Nonetheless, corporate demand for activities like buybacks will remain the biggest driver of stock demand next year.
Exchange-traded funds — which make up the most rapidly growing segment of the stock market — are showing no signs of slowing.
They’ll attract $400 billion of investor demand in 2018, up 33% from this year, according to a Goldman Sachs forecast. To further boost the case for the so-called passive vehicles, Goldman estimates that actively-managed mutual funds will be net sellers of equities next year, shedding $125 billion of exposure.
