ETP asset flows record best January on record
Global asset flows for exchange-traded products recorded the best January on record last month with USD40.2bn inflows.
Following a record-breaking year for global ETP flows in 2012 with USD262.7bn in net new assets, momentum continued in January. Investors favoured riskier assets as equities accounted for 94 per cent of flows.
Emerging markets were a dominant trend. EM equity ETPs gathered USD13.2bn in January, while EM bond ETPs drew solid flows of USD0.4bn amid improving fiscal conditions in many emerging markets. EM single country exposure ETFs also saw strong inflows of USD5.8bn with investors favouring China, South Korea and Mexico exposures.
Fixed income inflows moderated, with USD2.1bn for the month, as investors moved out of Treasuries and into other higher yielding areas of the fixed income universe. High yield ETPs were the one of best asset-gathering products with USD0.8bn of inflows.
“After crossing the milestone figure of USD2trn in total assets, the global ETP industry shows no signs of slowing down,” says Dodd Kittsley, global head of ETP research at BlackRock. “The USD40.2bn in total net inflows this month was the strongest on record for the industry in January, surpassing the previous record last year of USD33.5bn. Investors have been encouraged by continued low interest rates, moderated concerns about Europe, an improved economic outlook in China, and acceptable earnings results from US corporations.”
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