Global ETP Flows June 2020<\/strong><\/p>\n
\nFixed income flows reduced for the third consecutive month to $21.8B, the lowest inflow month since March, while inflows into equity ETPs picked up to $24.8B, and buying in commodities fell to the lowest level this year with $4.1B of inflows.<\/p>\n
Key themes in August:<\/strong><\/span><\/p>\n\n- Inflating expectations:<\/strong> linkers on a roll<\/li>\n
- Lacking conviction:<\/strong> equity flows mixed<\/li>\n
- Precious metals fall:<\/strong> gold and silver flows drop<\/li>\n<\/ol>\n
Inflating expectations<\/strong><\/span><\/p>\n\n- Investors have continuously added to inflation linkers over the past four months,<\/strong> with August flows of $3.5B coming close to June\u2019s record $4.4B of inflows as market attention picked up on inflation given the Federal Reserve\u2019s Jackson Hole symposium. Investors have added $12.2B to inflation linkers since May, which in itself would be just shy of 2016\u2019s annual flow record of $12.5B.<\/li>\n
- These consistent inflows to linkers come amid two consecutive months of selling out of rates ETPs (-$4.3B in August) for the first time since late 2016,<\/strong> when investors sold rates ETPs for three consecutive months in the run up to and month of the US election.<\/li>\n
- With record inflows to IG and HY so far this year, it would be remiss not to comment on the drop off in buying,<\/strong> with August marking the lowest inflow month for credit ($8.4B to IG and $2.7B to HY) since flows ramped up in April. To add a little perspective to this \u2018drop\u2019 in sentiment, the average monthly flow to IG between 2016 and 2019 was $3.6B, highlighting how monumental 2020 has been for credit flows.<\/li>\n<\/ul>\n
Lacking conviction<\/strong><\/span><\/p>\n\n- Investors have not added huge amounts of risk in the equity market:<\/strong> flows into global equities over the summer have gone up to an average of $23B per month, but with a large chunk allocated to broad DM equity, while flows into US equity have dropped off from the mammoth flows we saw in March and April. Just $9.3B was added to US equity in August, vs. the YTD monthly high of $27.5B in March, and following on from outflows in July.<\/li>\n
- At the same time, investors have slightly cooled on Europe, with $0.8B of inflows into European equities in August \u2013 the lowest in three months.<\/strong> Buying in US-listed ETPs propped up the inflows, with EMEA-listed ETPs flat on the month, marking a change from July when EMEA-listed flows made up the vast majority of inflows.<\/li>\n
- Conversely, EMEA-listed ETPs in EM were the only EM ETPs to gather meaningful inflows in August (+$1B),<\/strong> split fairly evenly between broad, regional and single country exposures. US and APAC-listed funds reversed July\u2019s positive flows to lead the exposure net down to $1.7B, predominantly out of single country ETPs.<\/li>\n<\/ul>\n
Precious metals fall<\/span><\/strong><\/p>\n\n- Monthly flows into gold followed July\u2019s record month by dropping to the lowest level of the year in August,<\/strong> despite market sentiment continuing to bolster, with $2.3B added, down from $9.4B in July. The precious metal is still on track for a record year, while silver flows also fell to $0.6B, the lowest level in four months.<\/li>\n
- Investors sold out of EMEA-listed gold ETPs for the first time since November 2019 (- $0.7B), while flows into US-listed ETPs dropped by c.65%.<\/strong> Buying in APAC-listed gold remained steady at $0.5B. However, the trend of EMEA selling didn\u2019t carry over to silver, where buying increased and helped make up a fall in US-listed flows.<\/li>\n
- Crude oil flows remained negative for a third consecutive month, with outflows slowing to $0.7B.<\/strong> Despite investor conviction on crude oil faltering over the summer, flows into crude oil ETPs are still on track for a record year given the large amount allocated in March and April (over $17B), with YTD flows at $15.3B.<\/li>\n<\/ul>\n
Source: ETFWorld.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":"
BlackRock ETP Landscape: 2020\u2019s version of a summer lull led to a drop off in headline global ETP flows in August, to $54.3B, from c.$70B in July.<\/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-22018","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-maandelijkse-etf-analyse","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\/nl\/wp-json\/wp\/v2\/posts\/22018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/comments?post=22018"}],"version-history":[{"count":1,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts\/22018\/revisions"}],"predecessor-version":[{"id":22019,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts\/22018\/revisions\/22019"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/media\/21172"}],"wp:attachment":[{"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/media?parent=22018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/categories?post=22018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/tags?post=22018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}