BlackRock’s January figures show strong global flows into ETPs
BlackRock’s EMEA ETP report this month shows that global flows into ETPs remained strong in January, with USD66.5 billion added, down from a bumper USD85.8 billion of inflows in December (the second highest inflow month on record).
BlackRock reports that the drop in flows from December can be attributed to less buying in equity ETPs, as fixed income and commodity flows increased month-on-month. Fixed income ETPs gathered USD24.9 billion, marginally up from December (USD24.4 billion), while commodities reversed the -USD0.2 billion outflows in December with USD5.1 billion of inflows, with around 60 per cent of this going into gold ETPs.
BlackRock writes that inflows into equity ETPs, while remaining positive, reduced across most exposures in January. Buying in US equities fell by around 60 per cent, to USD14.0 billion, while emerging market equity flows dropped from USD17.1 billion in December to USD5.5 billion.
Broad developed market equity ETP flows were an exception, remaining steady for the third consecutive month at USD13.4 billion. Flows into Japanese equity ETPs increased significantly from USD0.8B in December to USD4.6B in January although most of this went into APAC-listed funds and can be attributed to around USD4 billion of buying by the Bank of Japan, the firm says.
Inflows into EMEA-listed Japanese equity ETPs fell to just USD0.2 billion, while outflows from US-listed Japanese equity ETPs increased to -USD0.6billion. BlackRock writes that the UK wasn’t alone in leaving the European Union in January, as investors sold eurozone and German equities, contributing to the first outflow month for European equities since August (-USD1 billion). Flows displayed a domestic selling bias, with EMEA-listed European equity ETPs registering outflows while US-listed counterparts gained inflows of USD0.3 billion.