Most investors pulled money from equity during the month of August, choosing commodity and real estate ETFs and headed for the relative safety of bonds. Fixed income ETFs gathered inflows of $4.7bn in August, compared with $2.6bn in July. According to Financial Times, a short maturity bond ETF was the second most popular choice for ETF investors in August with the SPDR BarCap 1-3 month bill ETF, known as BIL, attracting inflows of $2.1bn.

While United States inflows did fall, the sharp swings during the month have also served to re-ignite the debate over whether the growing popularity of ETFs could be contributing to an increase in stock market volatility.

Pundits, investors, academics and analysts have all suggested that the growth of ETFs and index funds has resulted in an “increased commonality of trading” where the simultaneously buying or selling of all of the constituents of an index forces them to move together during the trading day.

We will see what develops in September, but either way, ETFs remain a great way to build a very diversified portfolio, especially if you get invested in the right ones.

According to Birinyi Associates analyst Kevin Pleines 70 billion shares changed hands last month, an 86% increase from the previous month. In August, ETF trading accounted for 29% of all the US exchange volume.

Shares traded in SPY (S&P 500) rose 104%, FAS (financials) trading rose 200% and VXX (volatility) rose 119%. Volume in all leveraged ETFs rose 114% and accounted for 19% of all ETF shares traded in August.

The 86% increase in shares trading is a phenomenal stat, especially if you think about it from a month-to-month basis.

What ETF Performed the Best in August?

The ETF that performed the best last month was the TVIX, a leveraged ETF tracking the VIX, or CBOE volatility index. It jumped 135%. The worst performing ETF was the XIV, an inverse VIX tracker, which fell nearly 51%.

You may want to look into the TVIX ETF, as it looks like that one will continue to perform strong.

You need to make sure that your company is on the ball and is considering China as an important part of its growth plan. If they aren’t, then they are going to be left behind. Why? Because no US company can compete with China’s dirt-cheap wages. Don’t believe your company should look into these options with China? Consider this list of American companies that have already jumped on board:

• Starbucks
• Boston Scientific
• Apple
• Yum Brands
• McDonalds
• Volkswagen
• Vale SA

Just to name a few. This is a trend that all American companies should follow. If Apple is doing it, then it is probably a great idea.

Remember, always do your homework and research when deciding if something like this is right for your personal financial goals. Either way, this is something that should be considered, as China continues to become more and more relevant within the greater financial market and overall scene.

Much like mutual funds, choosing the right one can be difficult. But unlike mutual funds you don’t have to spend big money to buy them or buy them through an investment company. Exchange-traded funds can be bought on most stock market exchanges.

You can buy short fund that short a whole index or sector. You can buy international ETFs that focus on a specific country or ones that are widespread all over the world. Commodity ETFs, sector ETFs, and random ETFs. They’re all there.

ETF Hound is here to help you sift through all the choices and find the ETF that is right for you during the current market conditions. Unlike mutual funds, buying and holding exchage traded funds isn’t always the way to go. You can buy a fund easy like a stock so you should think about them that way.

Let ETF Hound help you choose the right one.