Global ETP Flows February 2021
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\nTotal flows into UCITS ETPs remained at a similar level to the previous week, with $3.1B of net buying.<\/p>\n
However, the asset allocation story was very different, with equity climbing to inflows of $5.5B, while commodities and fixed income saw outflows of $622m and $1.8B, respectively.<\/p>\n
Equity flows set the standard<\/span><\/strong><\/p>\nFebruary 2021 marked the largest inflow month for global ETPs on record, with $131.7B added, beating the previous record set in November 2020 ($126.5B). In line with what we saw in November, buying was driven by inflows into equity ETPs ($108.1B) amid outflows from commodities (-$2.5B \u2013 primarily out of gold) and fixed income (FI) inflows of $19.4B.<\/p>\n
Investors used rates-driven market volatility in February as an opportunity to add to risk, with the second largest inflow month for US equities on record ($61.7B) \u2013 a huge jump vs. January\u2019s flows of $3.5B, and just shy of November 2020\u2019s record $65B.<\/p>\n
Sector flows show a barbell approach to investing<\/span><\/strong><\/p>\nAmid this record-setting month for flows, investors showed increased specificity with a significant pickup in global sector flows. February marked a record inflow month for financials ($9.3B) and materials ($2.4B), which have been popular alongside industrials and energy as cyclical and growth-geared sectors.<\/p>\n
At the other end of the sector spectrum, tech flows also hit a record $13.5B in February, vs. $8.6B in January.<\/p>\n
Quality-tilted sectors have continued to be popular with investors: healthcare flows, for example, returned to positive territory with $0.7B added in February, while traditional bond-proxy sectors like utilities and consumer staples were outliers in registering small outflows.<\/p>\n
Credit out of favour<\/span><\/strong><\/p>\nGlobal fixed income flows for February highlighted a disparity vs. equity, pointing to a lack of conviction in rate-sensitive exposures. HY notched up a second consecutive month of global outflows, with -$1.3B of net selling, while global investment grade inflows of $4.3B went almost entirely into EMEA-listed ETPs and masked outflows from US-listed IG ETPs.<\/p>\n
On the whole, global credit flows have lacked a clear trend since September, following a bumper $90B added to IG and HY between April and August 2020, driven by immense policy support \u2013 since then, IG and HY have recorded just $7B of net inflows. There is one bright spot, however, with EMD remaining popular within FI. EMD has seen consistent inflows, with $2.2B added in January and a further $1.4B in February (including $1.4B into China bond ETPs), continuing the inflow trend we have seen in every month since March 2020.<\/p>\n
Key themes<\/strong><\/span><\/p>\n\n- Equity flows:<\/span><\/strong> DM buying soars, with European equity hitting 12-week high<\/li>\n
- Sectors and thematics:<\/span><\/strong> record flows into financials in line with the cyclical rotation<\/li>\n
- Equity strategies:<\/strong><\/span> increasing demand for value across European and global exposures<\/li>\n
- Commodities:<\/strong><\/span> strong outflows from gold but increasing demand for broad commodities<\/li>\n
- Fixed income:<\/strong><\/span> outflows led by IG and EM hard currency debt, while inflation sees positive flows<\/li>\n<\/ol>\n
Source: ETFWorld.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":"
BlackRock ETP Landscape: February global flows: record equity flows, a barbell approach to sectors, and credit out of favour<\/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-22500","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\/22500","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=22500"}],"version-history":[{"count":1,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts\/22500\/revisions"}],"predecessor-version":[{"id":22501,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts\/22500\/revisions\/22501"}],"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=22500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/categories?post=22500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/tags?post=22500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}