ETP Landscape: ETPs with exposure to EM and Asia equity in demand during august as european equity fades

ETPs with exposure to EM and Asia equity in demand during august as european equity fades…..

Marchioni Ursula – Head of ETP Research EMEA at iShares

Global ETPs are on track for a record year following flows of $23.3bn in August, the highest ever for a month that is often impacted by a summer slowdown

Investors increased allocations to EM and Asia equity in search of relative value, but also bid up safe haven fixed income assets amid geopolitical uncertainty

EM equity had a fifth straight month of inflows with $4.7bn focused in broad EM and China funds, while developed Asia added another $3.4bn led by Japan

Concern over growth in Europe and the lack of a stronger reaction from the ECB drove pan-European equity outflows of ($2.8bn), mostly in US-listed funds

U.S. large cap equity ETPs shed ($0.1bn) but recovered following redemptions of ($13.5bn) during the first week of the month as the S&P 500 rallied to new highs

Fixed income flows of $11.5bn included a high yield rebound but the bulk of new assets went to safer long-duration Treasury and investment grade corporate funds

Source: ETFWorld.co.uk