The reduction in overall flows was driven by large outflows in the last week of the month, when investors sold $37.2B across asset classes, making it the worst week for outflows since records began.<\/strong><\/p>\nAmid market volatility, investors sold $31.5B of equity ETPs and $6.2B of fixed income (FI) ETPs. Commodity ETPs were the only asset class to gather inflows in the week ($1.8B), with the majority of this allocated to gold ETPs.<\/p>\n
Key themes in February:<\/strong><\/span><\/p>\n\n- Coronavirus drives outflows:<\/strong> despite record equity outflows, structural trends like ESG continue<\/li>\n
- Turning to defence in FI:<\/strong> outflows from credit but rates gain inflows<\/li>\n
- Golden rule:<\/strong> gold flows continue to increase<\/li>\n<\/ol>\n
Coronavirus drives outflows<\/strong><\/span><\/p>\n\n- The last week of February ranked as the worst week for equity outflows since records began in 2011<\/strong>, with investors selling $31.5B. February started as a strong month for flows, with investors adding $35.6B in the first three weeks, before coronavirus fears reduced overall flows into equity ETPs to only $4.1B in February, down from the $37B added in January.<\/li>\n
- Most of the selling occurred in US equity ETPs<\/strong>, with investors selling $21.7B of the exposure in the last week of the month. This marked the first outflow week for US equities this year, and the third-biggest outflow week on record. Despite selling late in the month, February remained a net inflow month for US equities (+$0.7B). In contrast, emerging market (EM) equities registered outflows of $8.1B.<\/li>\n
- Longer-term trends have continued to play a role in flows<\/strong>, despite market volatility, with sustainable ETPs gathering $5.7B of inflows in February. This continues a strong flow trend, with net inflows into sustainable ETPs in every week of this year, despite broad equity outflows.<\/li>\n<\/ul>\n
Turning to defence in FI<\/strong><\/span><\/p>\n\n- Fixed income ETP flows fared much better in February (+$17.1B) than equity flows.<\/strong> However, like equities, investors sold the exposure heavily in the last week of the month (-$6.2B) \u2013the second worst week for outflows since March 2014, when $8.5B exited the exposure. Rates ETPs were the biggest beneficiary for flows in February, gathering $10.5B \u2013 more than double the amount gathered in January ($4.4B).<\/li>\n
- Sentiment towards credit dampened in February,<\/strong> with monthly outflows from HY ETPs hitting a new record (-$6.2B). This was the first net outflow month for the exposure since August 2019, with selling out of EMEA and US-listed HY ETPs. Investment grade (IG) continued to gather inflows, with investors buying $2.8B of the exposure globally, down from $4B in January. Beneath the surface, outflows of $0.2B from EMEA-listed IG ETPs contrasted with inflows of $2.1B into US-listed counterparts, with FI ETPs functioning as an effective liquidity tool amid heightened volatility.<\/li>\n
- Emerging market debt (EMD) outflows were skewed towards local currency (LC) ETPs<\/strong>, with -$0.4B compared to -$0.3B from hard currency EMD in February.<\/li>\n<\/ul>\n
Golden rule<\/strong><\/span><\/p>\n\n- Commodity ETP flows increased from $5.1B in January to $6.1B in February.<\/strong> Year-to-date, commodity ETPs have captured $11.2B, which is already 62% of the total inflows into the exposure in 2019 ($18B).<\/li>\n
- The majority of the February inflows were into gold ETPs (+$3.7B).<\/strong> Investors have continued to favour the commodity for diversification properties amid market volatility as well as a lower-for-longer interest rate environment. So far this year, the precious metal has gained $6.9B inflows, with seven consecutive weeks of inflows since mid-January. Despite increased interest in safe havens, silver ETPs gained negligible inflows in February.<\/li>\n
- Crude oil ETPs also gained $2.2B of inflows in February,<\/strong> continuing the trend of positive flows from January, when investors added $0.9B to the commodity. While commodities are broadly viewed as a diversification tool, investors sold $0.1B of broad market commodity ETPs in February, preferring to allocate to gold ETPs for diversification.<\/li>\n<\/ul>\n
Source: ETFWorld.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":"
BlackRock ETP Landscape: Global flows into exchange-traded products (ETPs) totalled $28.4B in February \u2013a drop of 42% from January, when investors added $67.3B…….<\/p>\n","protected":false},"author":4,"featured_media":21172,"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":[311,196],"class_list":["post-21170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-etf-monthly-analysis","tag-blackrock-etp-landscape","tag-etp"],"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\/21170","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\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/comments?post=21170"}],"version-history":[{"count":1,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/21170\/revisions"}],"predecessor-version":[{"id":21171,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/21170\/revisions\/21171"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media\/21172"}],"wp:attachment":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media?parent=21170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/categories?post=21170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/tags?post=21170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}