US equity ETPs see USD5.0bn in inflows

Fri, 27/07/2012 - 09:54

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US exchange-traded products registered USD5.5bn of inflows during last week versus USD0.9bn of inflows the previous week, setting the YTD weekly flows average at +USD2.9bn (+USD85.4bn YTD in total cash flows), according to Deutsche Bank.

Equity, fixed income, and commodity ETPs experienced flows of +USD5.0bn, +USD1.2bn, and -USD0.8bn last week versus +USD0.3bn, +USD1.0bn, and -USD0.5bn the previous week, respectively.

Within equity ETPs, large cap products experienced the largest inflows (+USD3.5bn), while small cap products had the largest outflows (-USD0.5bn). Within fixed income ETPs, corporate products had the largest inflows (+USD1.1bn), while sovereign ETPs experienced the only outflows (-USD0.4bn), respectively. Within commodity ETPs, precious metals products experienced the largest outflows (-USD0.9bn), while the other sectors experienced less relevant flows.

Total weekly turnover dropped by six per cent to USD238bn versus USD254bn in the previous week. Last week’s turnover level was 36 per cent below last year’s weekly average. Equity ETPs experienced a decrease of USD17.5bn or 7.7 per cent to USD210bn. In the meantime, fixed income ETP turnover rose by 15.5 per cent (+USD1.9bn), along with commodity ETPs which rose by 1.8 per cent (+USD0.2bn).

ETP assets rose by 0.8 per cent driven by strong inflows during last week and ended the week at USD1.18trn. As of last Friday, US ETPs have accumulated an asset growth of 12.6 per cent YTD. Assets for equity, fixed income and commodity ETPs moved +USD8.1bn, +USD2.3bn, and -USD1.4bn during last week, respectively.

There were five new ETFs and one new ETN listed during last week. The new products offer exposure to equity, fixed income and currency asset classes. The new equity products offer access to income through MLP investing and enhanced returns through a technical analysis-based strategy investing in small cap companies. Similarly, the new fixed income products also offer access to income investing, but through preferred shares. The currency products offer leverage long and short exposure to the Australian dollar.