ETF flows slow again in an uncertain environment….<\/p>\n
By Marl\u00e8ne Hassine Konqui, Head of ETF Research and Kristo Durbaku, ETF Research Analyst<\/strong><\/p>\n Net new assets in the European ETF market dropped to \u20ac1.1bn in October \u2013 \u20ac4.8bn less than what we saw in September<\/strong> \u2013 given widespread political uncertainty and a lack of any obvious market trends.<\/p>\n Equity inflows slowed to just \u20ac386m,<\/strong> after another strong month for US equities (\u20ac2.2bn) and further signs of renewed interest in European equities (\u20ac1.7bn) were offset by a terrible month for global equities (-\u20ac3.4bn).<\/p>\n Fixed income ETF inflows halved in the rising rate environment (\u20ac701m),<\/strong> with investment-grade corporate bonds slumping to their worst month ever (-\u20ac1.3bn).<\/p>\n Is sentiment on Japan finally turning?<\/strong><\/p>\n Sentiment on Japan equity ETF flows may be turning.<\/strong><\/p>\n Monthly outflows have ceased for the first time since February. There are even some small inflows of \u20ac220m. This could be seen as the start of a turnaround \u2013 given improving PMI results (see graph below) and a better overall environment for equities.<\/p>\n And, while the country\u2019s economy is unlikely to do anything other than move in line with moderating global growth, the corporate sector remains healthy.<\/p>\n Cheap valuations and undemanding earnings expectations for next year should support and sustain a recovery in equity prices after the sell-off, especially if JPY weakens further.<\/p>\n As for the choice of investment vehicle, ETF flows may be supported by the more favourable environment for passive as correlations are currently high and sector dispersion is low.<\/p>\n Year-to-date, only 30% of active Japan equity managers have beaten their benchmark<\/p>\n Source: ETFWorld<\/p>\n","protected":false},"excerpt":{"rendered":" ETF flows slow again in an uncertain environment….<\/p>\n","protected":false},"author":2,"featured_media":18285,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"telegram_tosend":false,"telegram_tosend_message":"","telegram_tosend_target":0,"footnotes":"","_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[231],"tags":[235,234],"class_list":["post-19195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-etf-monthly-analysis","tag-lyxor-etf","tag-lyxor-etf-money-monitor"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/19195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/comments?post=19195"}],"version-history":[{"count":3,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/19195\/revisions"}],"predecessor-version":[{"id":19315,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/19195\/revisions\/19315"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media\/18285"}],"wp:attachment":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media?parent=19195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/categories?post=19195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/tags?post=19195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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