European ETF flows led by commodities and fixed income
30 April 2018 London
Image: Shutterstock
Equity exchange-traded funds (ETFs) continue to struggle with a $78 million net inflow and $2.5 billion of flow out month on month, according to European ETF flow data, compiled by State Street SPDR.
The US and emerging markets have $763 million of inflows this week and totalled $2.4 billion for the month.
Meanwhile, Europe saw $550 million of flows out this week and experienced a $5 billion outflow for the month, reversing all the stellar January inflows. Single country saw $649 million of outflows with Japan seeing the largest portion of this.
In equity sectors, US Financials regained its spot on the leaderboard with $104 million flowing in this week, and healthcare saw chunky outflows with $151 million out of US and $20 million out of Europe.
Energy sector ETFs have seen $38 million of inflows this week led by US and global prints, while real estate ETFs struggled with $66 million of outflows across the board and a total of $265 million of outflows for the month.
As for fixed income, there were $748 million of flows in this week and $2.3 billion this month, making for the largest volume seen since November last year.
Additionally, Europe led the flows last week with $404 million in this week and over $1 billion for the month, while government debt took in $2.6 billion of inflows in the last month against its $480 million of outflows for corporate debt.
Within the corporate debt space, high yield took in $220 million last month, while Inv.Grade lost $673 million. In addition, money market ETFs have been gathering assets, with last week seeing $134 million.
In emerging markets, debt had a fairly solid week with $158 million in after March saw over $500 million in outflows, while equities continue their asset gathering run with $316 million last week and a $1.8 billion inflow month.
In the commodity market, precious metals had a successful week with $587 million in as gold demand took off making a $1.38 billion trailing month.
Claire Perryman, head of UK for SPDR ETFs, said: “Flows were led by commodities and fixed income last week. Within equities, it was US and emerging markets that led the way while European flows gave up much of their January inflows.”
Perryman added: “These numbers filtered down to more targeted exposures too as US Financials ETFs had a better week and regained their position as investors’ top sector of the week with good interest in energy as well.”
Emerging market investments also came under the spotlight this week. Emerging market equities continue their momentum and after a weaker March, emerging market debt began to see flows gathering momentum again.”
The US and emerging markets have $763 million of inflows this week and totalled $2.4 billion for the month.
Meanwhile, Europe saw $550 million of flows out this week and experienced a $5 billion outflow for the month, reversing all the stellar January inflows. Single country saw $649 million of outflows with Japan seeing the largest portion of this.
In equity sectors, US Financials regained its spot on the leaderboard with $104 million flowing in this week, and healthcare saw chunky outflows with $151 million out of US and $20 million out of Europe.
Energy sector ETFs have seen $38 million of inflows this week led by US and global prints, while real estate ETFs struggled with $66 million of outflows across the board and a total of $265 million of outflows for the month.
As for fixed income, there were $748 million of flows in this week and $2.3 billion this month, making for the largest volume seen since November last year.
Additionally, Europe led the flows last week with $404 million in this week and over $1 billion for the month, while government debt took in $2.6 billion of inflows in the last month against its $480 million of outflows for corporate debt.
Within the corporate debt space, high yield took in $220 million last month, while Inv.Grade lost $673 million. In addition, money market ETFs have been gathering assets, with last week seeing $134 million.
In emerging markets, debt had a fairly solid week with $158 million in after March saw over $500 million in outflows, while equities continue their asset gathering run with $316 million last week and a $1.8 billion inflow month.
In the commodity market, precious metals had a successful week with $587 million in as gold demand took off making a $1.38 billion trailing month.
Claire Perryman, head of UK for SPDR ETFs, said: “Flows were led by commodities and fixed income last week. Within equities, it was US and emerging markets that led the way while European flows gave up much of their January inflows.”
Perryman added: “These numbers filtered down to more targeted exposures too as US Financials ETFs had a better week and regained their position as investors’ top sector of the week with good interest in energy as well.”
Emerging market investments also came under the spotlight this week. Emerging market equities continue their momentum and after a weaker March, emerging market debt began to see flows gathering momentum again.”
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