ETP Landscape: Global ETP flows reach $20.8bn in May driven by fixed income and european equity

– May global ETP flows were marked by demand for fixed income and non-US equity as interest rates fell further and investors continued to search for relative value outside the US…..

Marchioni Ursula – iShares

    Global fixed income inflows of $14.1bn were paced by longer duration US Treasuries and investment grade corporate funds and also extended to categories offering enhanced income such as high yield and emerging markets debt
    Fixed income ETP flows are on track for a record year as assets have doubled since 2010, passing the $400bn milestone
    Overall equity ETP inflows of $6.9bn moderated from March and April
    European equities gathered $4.6bn helped by expectations for ECB stimulus and are on pace for their best year since 2009
    Emerging markets took in $2.7bn as the MSCI EM index continued its rebound
    US equity outflows totaled ($5.1bn) as ongoing momentum for large cap value, energy and real estate was offset by small cap redemptions

Source: – BlackRock ETP Research

The Federal Reserve’s surprise September no-taper announcement removed some risk of near-term volatility and took some pressure off rate-sensitive assets. As a result, stocks rallied for much of the month and investors moved heavily back into Developed Markets Equity ETPs. Investors also began to warm up to Emerging Markets Equities.

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