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Amundi ETF Flows Analysis – November 2021

Amundi ETF : October Overview. In October, investors largely favored equities vs bonds.

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This is reflected both globally, where total equity in-flows accounted for €79.1bn while fixed income accounted for €19.5bn, and with the European-registered ETF markets where total equity in-flows accounted for €9.9bn while fixed income accounted for €0.5 bn.

Overall, global exchange-traded fund in-flows were €102bn with North American equities at €50.6bn accounting for almost half of capital allocated to all asset classes. World equity indices were the second most popular asset class at €10.9bn.

These two asset classes were popular in both Europe and the US but not in Asia. In this region, investors preferred Japan, allocating €3.1bn as well as emerging markets which gained €2.4bn.

Equities

Investors allocated €9.9bn to European-registered equity ETFs last month. Mirroring the trends seen at a global level, North American indices were the most popular gaining €4.1bn while World strategies were the second most popular at €2.4bn. There were no major regional outflows apart from €570m from UK equity indices.

Allocations to equity ESG strategies were €5.6bn last month, with the majority of those allocations going to World indices at €1.9bn. North American strategies were the second most popular at €1.6bn. In other words, ESG World indices accounted for almost 80% of investors’ equity allocations in the region. In North America, ESG in-flows accounted for more than one third of the capital invested in the region.

On a similar theme, climate strategies gained €977m reflecting the increased number of asset managers providing these products since the EU provided this index classification.

Recent trends in smart beta products also continued with Quality strategies gaining €781m. The outflows from Value products slowed to a trickle this month at €50m after hitting almost €900m last month.

Fixed Income

While there were in-flows into European fixed income ETFs, these products were less popular than in the US with only government bonds making significant gains at €629m. Corporate bond in-flows were a paltry €8m in comparison. There were out-flows of €651m from emerging market government bonds.

Mid-duration US government bonds gained €382m, making them the most popular in this category. Inflation concerns still seemed to motivate some investors, with inflation-linked Eurozone and US gaining €275m and €197m respectively but in-flows into these product categories was lower than in previous months.

Worries about rising consumer prices also dominated corporate debt with investors allocating €160m to corporate floating rate strategies. There were outflows of €367m and €114m from corporate Eurozone and US strategies leaving overall in-flows almost flat at €8m.

ESG fixed income, was attracted investors, gaining €712m with €279m flowing in corporate Eurozone and €131m into global financial corporations. Investors are shifting away from traditional corporate debt ETFs and into ESG corporate debt ETFs. While there were no overall in-flows into European-registered corporate debt ETFs, a significant rotation between these two asset classes occurred.

Source: ETFWorld

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