Copying and distributing are prohibited without permission of the publisher
Record ETP flows continue
06 August 2013
Exchange traded product flows surpass 2012 levels, finds BlackRock
Global exchange traded product (ETP) flows continue to set records, with year to date flows higher than in 2012, according to BlackRock.
The asset manager's ETP Landscape monthly Snapshot report found global ETP flows rebounded to $44.1bn in July , having dipped by $5.2bn in June, which the report's authors argued was evidence that investors were increasingly turning to ETPs “to express market sentiment”.
“The shift in market sentiment was once again influenced by comments from Ben Bernanke on July 10 to qualify his previous comments made about the pace of bond purchases that had roiled markets,” they said.
The report stated that 2013 year-to-date (YTD) flows of $143.3bn were higher than the record flows of $128.3bn in 2012, while YTD equity flows amounted to $148.0bn, “far ahead” of the $76.9bn over 2012 levels.
US equities accounted for the majority of flows, with $31.6bn - or 72% of all July ETP equity flows – and accounted for 41% of all ETP assets.
The report also noted that the Abenomics experiment in Japan continued to suport ETP flows, as Japanese Equity ETPs saw another $2bn of investments in July, taking YTD inflows to a record $28bn.
In fixed income markets, June's $8.4bn of outflows was reversed,with $6.4bn of new money in July. The report noted that fixed income ETP inflows had been positive every month in 2013, aside from June, most likely as a result of investor fear over the end of the US' QE programme.