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ETF flows surge in February

07 March 2014


Fixed income ETFs post monthly record highs

Read more: ETF ETFGI BlackRock

The global ETF/ETP industry posted a new record high of $2.44trn due to net inflows of $29bn and positive market performance, according to preliminary findings from ETFGI’s February Global ETF and ETP industry insights report.

BlackRock cited global ETP inflows in February of $27.2bn spurred on by Janet Yellen’s February 11th address to Congress, which was well received by equity markets.

“Positive comments from the Fed indicating that the US economy continues to brighten, the S&P500 ending February with a record close of 1859 and signs of a wider global recovery in equities seems to have caused investors to come out of their winter hibernation after the winter storms and put net inflows of $29bn into ETFs/ETPs in February,†according to Deborah Fuhr, managing partner at ETFGI.

When comparing overall net inflows, fixed income ETFs/ETPs gathered $16.8bn followed by equity ETFs/ETPs with $10.2bn and commodity ETFs/ETPs saw net inflows of $870m, according to ETFGI. BlackRock states fixed income flows of $19.6bnm which was a new monthly record and due to expectations for continued low interest rates and low inflation. Despite inflows into all duration buckets, short maturity funds had a record month taking in $7.4bn, while US Treasuries brought in $11.4bn, investment grade corporate gathered $3.6bn and high-yield corporate added $1.4bn.

Overall equity flows were moderate at $5.8bn with investors continuing to favour non-US developed markets exposures.  Japanese equity inflows reached $4.1bn and pan-European funds gathered $2.8bn as evidence continues to point toward improving growth in the region. US equity outflows totalled ($0.2bn) and emerging markets shed ($4.5bn).


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