Global ETP Flows April 2020<\/strong><\/p>\n
\nbuying in fixed income ETPs increased to $35.2B \u2013the second highest monthly inflow into the asset class on record. Commodity ETP buying dropped to $10.7B, down from April\u2019s record month of over $21B of inflows.<\/p>\n
Key themes in May:<\/strong><\/span><\/p>\n\n- Flat on the surface<\/strong>: buying and selling trends in equity net out.<\/li>\n
- Credit flows continue<\/strong>: investment grade (IG) and high yield (HY) lead the way.<\/li>\n
- The well dries up:<\/strong> oil flows drop but silver shines<\/li>\n<\/ol>\n
Flat <\/strong> on the surface<\/strong><\/span><\/p>\n\n- Inflows into equity ETPs were flat in May (-$79m), but this masks divergence in investor focus.<\/strong> Continued outflows from emerging market (EM) and European equity ETPs (-$9.5B and -$2.6B respectively) were offset by inflows into US ($3.8B) and Japanese equities ($9B) \u2013 the latter of which was mostly into APAC-listed funds and driven by purchases by the Bank of Japan, which accounted for around half of the total.<\/li>\n
- EM equities have not recorded a month of inflows since January.<\/strong> Outflows have been indiscriminate, with investors selling out of broad EM and single country exposures.<\/li>\n
- Investors have continued to be selective in their equity exposure with flows into sector ETPs remaining elevated.<\/strong> Technology took the mantle from healthcare as the most popular sector in May, with $5.2B of inflows, up from $4.1B in April, while healthcare inflows dropped from a record $7.3B in April to $4.3B in May. Utilities and consumer staples, meanwhile, had outflows totalling $1.0B. Selectivity through factors also continued with quality being the sole factor that gained inflows in May, with $1.1B added. Value flows were flat despite a pickup in the last week of the month, which coincided with a revival in sentiment towards the factor.<\/li>\n<\/ul>\n
Credit flows continue<\/strong><\/span><\/p>\n\n- In fixed income, inflows into credit continued to lead buying, albeit down from the record levels in April.<\/strong> Inflows into IG dropped slightly to $12.3B, while HY registered $7.7B of inflows. Although the vast majority of HY inflows were again focused in US-listed products, buying in EMEA-listed HY increased to $1.5B, building on the $1.1B of inflows in April, which came after a torrid couple of months that saw outflows totalling $5.2B across February and March.<\/li>\n
- Flows have shown evidence of differentiation in investor sentiment in credit, depending on listing region.<\/strong> Investors in EMEA-listed ETPs, for example, have been investing in eurozone and US IG in almost equal measures for two consecutive months now. Investors in US-listed ETPs, on the other hand, have displayed more of a domestic bias with the vast majority of money going into US credit, with small inflows into global exposures as well.<\/li>\n
- The pickup in fixed income flows at the headline level can be attributed to increased buying in multi-sector ETPs \u2013which tend to track broad fixed income indices, which gathered $7.4B in May, up from $2.7B in April.<\/strong> This offset falling inflows into rates ETPs, with $2.7B added in May \u2013 the lowest monthly inflow since November 2019. Emerging market debt (EMD) registered $0.6B of inflows over the course of the month, although beneath the surface, there was a clear preference for hard currency (+$1.1B) over local currency.<\/li>\n<\/ul>\n
The well dries up<\/span><\/strong><\/p>\n\n- Inflows into commodities fell from April\u2019s record levels ($21.4B) to $10.7B in May,<\/strong> due to a significant drop in interest in crude oil ETPs, which registered just $0.9B of inflows, compared to a record $11.4B in April, as oil price volatility dampened and investors moved away from tactical buying.<\/li>\n
- Inflows into precious metal ETPs, on the other hand, drove overall net buying in commodities.<\/strong> Gold flows dropped a little to $7.7B, with most of the buying focused in USlisted ETPs, although inflows into EMEA products increased to $2.2B.<\/li>\n
- Silver inflows totalled $1.2B in May \u2013 a 3x increase from the previous month, and the largest monthly inflow on record.<\/strong> Inflows were largely into US-listed ETPs, and demonstrate how sentiment towards silver often lags gold<\/li>\n<\/ul>\n
Source: ETFWorld.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":"
BlackRock ETP Landscape: Global ETP inflows fell at the headline level to $45.8B in May, down from almost $69B in April. Despite the overall drop in flows, which can be attributed to global equity flows ending the month flat, …<\/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-21649","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\/21649","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=21649"}],"version-history":[{"count":1,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/21649\/revisions"}],"predecessor-version":[{"id":21650,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/21649\/revisions\/21650"}],"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=21649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/categories?post=21649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/tags?post=21649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}