ETP flows recover from heavy net outflows
10 May 2018 London
Image: Shutterstock
Exchange-traded product (ETP) flows recovered from several weeks of heavy net outflows to attract $3.66 billion of net inflows last week, according to a report by State Street’s SPDR.
The report, released on 10 May, showed that equity had an exceptional week, with $3.9 billion of net inflows.
However, SPDR found that fixed income continued to suffer, enduring $430 million of net outflows.
Global exposures saw massive net inflows of $4.2 billion, while single country and US exposures saw relatively muted net outflows of $186 million and $100 million, respectively.
Sector flows were fairly subdued last week, with consumer staples and energy seeing net inflows of just $26 million and $25 million, respectively. Financials and consumer discretionary saw net outflows of $74 million and $49 million, respectively.
SPDR found, in a reversal from the previous few weeks, investors preferred corporates over government exposures last week, adding $60 million to the former compared to net outflows of $421 million from the latter.
Credit flows were muted, though investors favoured high yield over investment grade exposures, adding $129 million compared to net outflows of $92 million.
SPDR said: “Investors continued to slightly prefer the short to intermediate end of the curve, adding a total $191 million to this area. The longer ends of the curve saw total net outflows of $403 million.”
Commodity flows softened last week, with broad based and precious metals seeing net inflows of just $72 million and $27 million, respectively. Energy saw further net outflows of $38 million.
Claire Perryman, head of UK for SPDR ETFs, said: “Last week’s bullish equity flows suggest a wave of renewed confidence in the market, but investor sentiment remains somewhat fragile.”
She added: “Although there are positive factors affecting investor sentiment such as the strong current earnings season in the US, there is also slowing economic growth in the EU, and political volatility including US President Trump’s decision to pull the US out of the nuclear deal with Iran.”
The report, released on 10 May, showed that equity had an exceptional week, with $3.9 billion of net inflows.
However, SPDR found that fixed income continued to suffer, enduring $430 million of net outflows.
Global exposures saw massive net inflows of $4.2 billion, while single country and US exposures saw relatively muted net outflows of $186 million and $100 million, respectively.
Sector flows were fairly subdued last week, with consumer staples and energy seeing net inflows of just $26 million and $25 million, respectively. Financials and consumer discretionary saw net outflows of $74 million and $49 million, respectively.
SPDR found, in a reversal from the previous few weeks, investors preferred corporates over government exposures last week, adding $60 million to the former compared to net outflows of $421 million from the latter.
Credit flows were muted, though investors favoured high yield over investment grade exposures, adding $129 million compared to net outflows of $92 million.
SPDR said: “Investors continued to slightly prefer the short to intermediate end of the curve, adding a total $191 million to this area. The longer ends of the curve saw total net outflows of $403 million.”
Commodity flows softened last week, with broad based and precious metals seeing net inflows of just $72 million and $27 million, respectively. Energy saw further net outflows of $38 million.
Claire Perryman, head of UK for SPDR ETFs, said: “Last week’s bullish equity flows suggest a wave of renewed confidence in the market, but investor sentiment remains somewhat fragile.”
She added: “Although there are positive factors affecting investor sentiment such as the strong current earnings season in the US, there is also slowing economic growth in the EU, and political volatility including US President Trump’s decision to pull the US out of the nuclear deal with Iran.”
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