ETFs post inflows globally despite US and Canada outflows

Jul 27th, 2018 | By | Category: ETF and Index News

ETFs and ETPs (hereafter ETFs) listed globally gathered $8.7 billion of net inflows during June despite net outflows recorded in the US and Canada, according to data from ETF industry consultant ETFGI.

ETF net inflows continue globally despite US and Canada withdrawals

ETFGI reports that the global ETF industry gathered $8.7bn in net inflows during June 2018.

June marked the fifty-third consecutive month of positive net inflows for the global ETF industry although it also represented the lowest amount gathered since the run began in February 2014.

Owing to market moves, assets invested in ETFs globally actually decreased by 0.35% from $5.004 trillion in May 2018 to $4.986tn.

Year-to-date there have been net inflows of $223.0bn. While punchy, this is notably less compared with 2017’s bumper year when ETFs had gathered net inflows of $347bn at this point.

Equity ETFs gathered net new assets of $2.1bn in June bringing net inflows for 2018 to $150.2bn. Fixed Income ETFs brought in $7.6bn in new money for June, growing net inflows for 2018 to $46.4bn.

US-listed ETF net outflows of $1.5bn during June marked the third time during 2018 the country’s ETF industry has seen net withdrawals, following outflows in February and March.

Fixed income ETFs were still in demand in the US during June, gathering $6.5bn, although this was mirrored by $6.6bn worth of net outflows from equity products.

According to ETFGI, monthly outflows were greatest for those products providing exposure to emerging markets equities, such as the iShares MSCI Emerging Markets ETF with outflows of $5.4bn, followed by products with US equities exposure, such as the SPDR S&P 500 ETF and the iShares Core S&P 500 ETF, with $4.7bn and $3.4bn in net outflows respectively.

Canada-listed ETFs also saw net outflows for the month to the tune of $330 million, although this marked the first month of negative flows for the country since September 2017.

Active products gathered the largest net inflows in Canada during June with $460m, while equity ETFs experienced the largest net outflows with $860m.

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