US equities propel global ETP flows in August, finds BlackRock

Sep 18th, 2018 | By | Category: ETF and Index News

Global exchange-traded products collected $36.2 billion in August, driven by funds offering exposure to US equites with $15.8bn in net inflows, according to the latest BlackRock ETP Landscape report.

US equities propel global ETP flows in August, finds BlackRock

Year-to-date net inflows into ETPs globally stand at stand at $311.7bn, according to BlackRock.

The strong demand for US equities marked the fifth consecutive month of inflows for the asset class amid strong earnings and corporate tax cuts.

Large-cap ETPs were most sought after, collecting $6.9bn, followed by small-cap ETPs with $2.6bn and mid-cap ETPs with $1.7bn.

Fixed income saw yet another month of inflows with $8.0bn for August, bringing year-to-date flows to $77.9bn.

The category has seen consistent flows of $5bn or more in each month in 2018. US Treasuries added $3.0bn led by short maturity funds with $1.5bn.

Investment grade corporate ETPs brought in $1.7bn while there was also interest in high yield corporates which netted $1.6bn in flows this month, following the asset class shedding $8.0bn between January and June 2018.

Despite the rise in the US dollar and the continuation of high trade tensions globally – factors that tend to dampen demand for emerging market equities – ETPs tracking the asset class brought in $3.2bn in net inflows. BlackRock attributes investors’ support of emerging markets to ongoing economic reforms, robust earnings growth and attractive valuations.

Flows to ETPs providing exposure to European equities were largely flat, shrinking a modest $0.5bn, with outflows driven by broad EMU and eurozone funds. Investors remain wary of the region due to a backdrop of relatively muted earnings growth, weak economic momentum and heightened political risks, says BlackRock.

On the commodities front, gold ETPs experienced $1.4bn in net outflows, their third consecutive month of net money outpouring.

BlackRock reports that year-to-date (YTD) flows to global ETPs stand at $311.7bn.

The asset manager notes that, while the year started off with strong flows of $139.4bn during Q1, investor demand dampened somewhat in Q2 with $88.7bn in net inflows recorded during this period. Q3 YTD is on pace to surpass Q2 with $84.1bn in net inflows recorded through August.

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