ETPs listed in Europe generated $4.2 billion in flows, which represents 45% of total global flows in October, the highest ratio this year.
• Flows were broadly distributed across exposures, including Gold.
• Flows into European listed ETFs remained robust and diversified by asset class, making
October the third consecutive month of flows greater than $4 billion.
Dodd Kittsley, Global Head of ETP Research for BlackRock, commented: “Flows into European-listed ETPs as well as flows of $1.3bn into Pan-European exposures, regardless of where listed, suggest that fears of a near-term Eurozone break-up have subsided following ECB commitments to backstop sovereign bond markets.”
Investors in ETPs embraced Emerging Markets in October.
• Emerging Markets Bond ETPs garnered $1.9 billion, the highest monthly total on record.
• Emerging Markets Equity ETPs drew $6.7 billion in flows, spanning broad exposure ETPs with $2.0 billion, China exposure ETPs with $2.8 billion and Brazil exposure ETPs with $0.7 billion. Emerging Markets Equity ETP flows in 2012 are outpacing flows in 2011 by a wide margin.
Appetite for yield drives flows into Investment Grade Corporate ETPs.
• Investment Grade Corporate ETP flows led the Fixed Income category, absorbing $3.3 billion in October showing continued demand for enhanced yield balanced by credit quality.
Gold ETPs attracted $2.5 billion in October, building on robust flows the last two months.
• Gold ETPs have attracted $10.0 billion over the past three months.
Dodd Kittsley commented: “Investors maintained a degree of risk appetite in October, embracing emerging markets equities and bonds and investment grade corporates, yet hedged risks by putting money into gold.”
Source: ETFWorld.co.uk
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