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ETF outflows for August pass $17bn
13 September 2013
Political and economic jitters cause worst month for ETFs since January 2010
Exchange traded funds (ETFs) had net outflows of $17.3bn in August, marking the most significant redemptions since January 2010, according to analysis by Birinyi Associates.
US equity-focused funds suffered the most with net outflows of $14.9bn followed by bonds with outflows of $5.9bn.
$1.7bn flowed out of emerging market equity ETF while on the other hand developed market equity-focused ETFs had net inflows of $4.6bn.
Birinyi's figures covered all types of ETFs, including exchange traded products and exchange traded notes.
Deborah Fuhr, managing partner at ETFGI, said: “Investors' concern and uncertainty over the impact on markets of a potential military conflict in Syria and when and how the Federal Reserve will begin quantitative easing tapering caused investors to net withdraw S$16.77 billion from ETFs/ETPs in August.”
Birinyi said equity funds across all sectors saw net outflows of $10.9bn in August, although net year-to-date inflows into equity EFTs still stood at $106.3bn. Total ETF assets at the end of the month were down 3.2% to $1.49trn.
The monthly flow figures were close to those compiled by ETFGI, which found global ETFs and ETPs saw record net outflows of $16.77bn, a reversal from July's near record net inflows of $45.26bn.
EFTGI found global ETF and ETP assets also fell from the July record high of $2.17trn to $2.11trn at the end of August.