ETFs have been driving trading activity on the exchange for several days now, with an astonishing 40% of yesterday’s notional volume attributed to these investment vehicles. This is not a new trend, as the past nine sessions have seen an ETF value greater than 35% (the second longest streak in our dataset) of the tape. However, what is notable is that volatility has remained low despite this significant ETF activity. In fact, the last time we saw such a prolonged period of ETF dominance, the VIX was above 70.

It’s worth considering the implications of this trend. Could it be a sign of complacency among investors, who are relying too heavily on ETFs to navigate the market? Or is it possible that ETFs are simply providing a more efficient way for traders to participate in the market without having to worry about the underlying stocks? Whatever the case may be, it’s clear that ETFs continue to play an outsized role in shaping the direction of the market.

It’s also worth noting that this trend is not limited to any particular sector or asset class. ETFs are driving activity across the board, from stocks and bonds to commodities and currencies. This suggests that investors are looking for exposure to a broad range of assets in order to diversify their portfolios and manage risk.

Of course, it’s important to remember that past performance is not indicative of future results. While ETFs have been a dominant force in the market recently, there is no guarantee that this trend will continue. As always, it’s important to do your own research and consult with a financial advisor before making any investment decisions.