Year-to-date global ETP flows of $123.9bn were up 25% vs. the first half of last year following a Q2 total of $90.6bn that exceeded any quarter in the past 5 years ….
Marchioni Ursula – Head of ETP Research EMEA at iShares
• Fixed income, European equity, Japanese equity and broad-based global/global ex-US equity have been strong contributors so far this year
• US equity and EM equity flows have improved after a slow start to the year
June inflows of $36.3bn included the best month of the year for equities with $36.8bn, driven by US, European and emerging markets equity funds
US equity ETP flows surged to $21.0bn led by large cap and sector funds, while European equity added $4.0bn in response to monetary policy easing by the ECB
EM equity funds brought in $7.7bn during June to move back into positive territory on the year, helped by continued momentum for broad EM funds, a more stable outlook for China’s economy, and ongoing strength for Taiwanese stocks
Fixed income ETPs slowed to ($0.4bn) as investors anticipated higher rates despite a still-accommodative Fed, with Treasury outflows offsetting broad/aggregate US and emerging markets debt inflows
Ursula Marchioni, Head of ETP Research EMEA at iShares commented:
“Q2 was the best quarter we have seen in the last 5 years. Year-to-date global ETP flows reached $123.9bn, up 25% from the first half of last year.”
“June was the strongest month since the summer of 2013 with global ETPs attracting more than $36bn of inflows. Investors piled into US equity ETPs with $21.0bn and European equity maintained its pace capturing $4.0bn. Among single-country funds, Italian and Spanish exposures gathered $0.7bn combined, boosting the YTD total to $4.3bn.”
“In European domiciled ETPs, June saw $6.7bn in flows boosted by the ECB easing action and the broad recovery of investor demand in Europe. These European flows marked 12 consecutive months of net new flows for the region.”
“June also saw emerging markets exposures rebound strongly. With $7.7bn of inflows this month and $16.1bn in total this quarter, emerging markets equity ETP flows turned positive for the year. Single country funds led the way in June with $5.0bn in flows going to China, Taiwan and India. India flows were supported by continued positive sentiment around reforms following Mr. Modi’s election victory. Taiwan’s high dividend market is well positioned for the continued hunt for yield and China witnessed a turnaround in data that follows short-term easing measures from the authorities. Global emerging market debt has also continued to benefit from investors’ looking for yield with $1.2bn of inflows in June, the third month in a row where global ETP flows with EM debt exposures surpassed $1bn.”
Source: ETFWorld.co.uk
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