Global ETP Flows October 2020
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\nEquity flows were behind the overall drop, falling to $22.4B in October, while commodity products recorded their lowest monthly inflows this year despite $1.5B of gold and silver buying.<\/p>\n
Key themes in October:<\/strong><\/span><\/p>\n\n- Pre-election jitters:<\/strong> US equity flows fell to their lowest level since July<\/li>\n
- Eyes on China:<\/strong> flows into China bonds and equities continued<\/li>\n
- A steady rate:<\/strong> rates inflows matched the previous month<\/li>\n<\/ol>\n
Pre-election jitters<\/strong><\/span><\/p>\n\n- We saw an overall drop in flows into US equity exposures in the run up to the US election.<\/strong> US equity ETP inflows fell to their lowest level since July \u2013 in a similar manner to the trend we saw ahead of the 2016 US election \u2013 with just over $4.4B of inflows in October 2020 compared to almost $17B in September. International investor sentiment appears to have been a large driver of this fall; EMEA-listed US equity ETP inflows dropped to just 15% vs. September\u2019s inflows.<\/li>\n
- At the same time, the recent trend of selectivity in US equity flows continued, with cyclicals remaining in favour.<\/strong> Sectors such as materials and industrials gathered inflows, while healthcare continued to post outflows despite some inflows at the global sector level. Tech remains popular with $1.3B added in October.<\/li>\n
- Overall global equity Inflows in October were largely driven by a pickup in emerging market (EM) and broad developed market buying,<\/strong> which helped to offset the drop in US equity buying, and European equity flows turning negative for the first time since June (-$1.8B).<\/li>\n<\/ul>\n
Eyes on China<\/strong><\/span><\/p>\n\n- EM debt ETPs have consistently gathered inflows since March, with $12.6B added since the mammoth $8.3B that was lost in March.<\/strong> October\u2019s inflows of $3.6B continued to show a large preference for hard currency products, while China bonds remain popular. The $0.9B added in October \u2013 largely into EMEA-listed ETPs \u2013 is the second highest inflow month of the year (after a record $1.1B in August).<\/li>\n
- Investors simultaneously continued to allocate to Chinese equities, with $1.5B added in October, driven by buying in US and EMEAlisted products.<\/strong> In fact, APAC-listed flows into China equities amounted to just 27% of the monthly inflows, following the trend that we saw towards the end of 2019 of international money outpacing domestic inflows.<\/li>\n
- Inflows into EM equity continued to be fairly well split between single country and broad EM exposures.<\/strong> This marks a change from the inflows we saw after the Covid volatility earlier this year; inflows in March and July were almost entirely into single country ETPs.<\/li>\n<\/ul>\n
A steady rate<\/span><\/strong><\/p>\n\n- Rates flows remained remarkably consistent in October, matching September\u2019s inflows of $4.4B, off the back of lacklustre flows over the summer.<\/strong> Inflows into US sovereigns continued to dominate, albeit to a lesser extent than in September ($2.4B vs. $4B, respectively). In the credit space, investment grade (IG) flows appeared to have found a more solid footing in October, while high yield (HY) flows started to recover before dropping off to close the month $1.7B out.<\/li>\n
- The rest of the flows in rates were spread across sovereign exposures, with eurozone rates gathering $0.3B of inflows, helping to compensate for the $0.4B of outflows in September.<\/strong> October also saw inflows into single country sovereigns such as Italy and Germany.<\/li>\n
- Investors continued to allocate to inflation linkers with a further $2.3B added in October \u2013 the fourth highest monthly inflows of the year)<\/strong> This takes YTD flows to $11.5B, just short of 2016\u2019s record inflows ($11.9B).<\/li>\n<\/ul>\n
Source: ETFWorld.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":"
BlackRock ETP Landscape: Global flows into exchange-traded products (ETPs) fell to $47.4B in October, down from $55B in September, despite a pickup in fixed income buying to $23.3B.<\/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-22163","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\/22163","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=22163"}],"version-history":[{"count":1,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts\/22163\/revisions"}],"predecessor-version":[{"id":22164,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts\/22163\/revisions\/22164"}],"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=22163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/categories?post=22163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/tags?post=22163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}