Amundi reports that equity ETFs dominated inflows over January

flows

Amundi ETF reports that the ETF market began 2020 in full swing, with almost EUR56 billion (+EUR55.7 billion) of inflows globally in January.

The firm writes that these inflows maintained the same trend observed since the end of last year. Over the first month of the year, flows towards equity exposures were largely positive (+EUR30.7 billion). This resulted in an increasing appetite for World exposures, which leaded inflows (+EUR10.4 billion), followed by North America (+EUR7.4 billion), Sectors and Smart Beta (+EUR6.9 billion) exposures.
 
Fixed Income ETFs also maintained their appeal, attracting close to (+EUR21 billion) worldwide, of which +EUR7 billion were into Aggregate exposures and +EUR5.8 billion into Government Debt ETFs, at the disadvantage of Corporate Bond ETFs that saw positive but smaller flows (+EUR3.4 billion) compared to December 2019 (+EUR6.8 billion).
 
Europe saw total net flows of +EUR11.6 billion, Amundi says, with equities seeing inflows of +EUR7.2 billion, following the global trend.

World exposures occupied a large proportion of the month’s inflows, at (+EUR4.8 billion euros). Followed by Emerging Markets (+EUR1.1 billion) and US & North America (+EUR1.1 billion) exposures.

In terms of sectors and themes, the IT sector attracted the majority of investment volumes, at +EUR434 million, followed by AI and Robotics that gathered +EUR328 million net new assets.

Smart Beta ETFs did well among equity products, accumulating +EUR722 million of inflows, of which +EUR345 million went into Quality ETFs and +EUR240 million into Yield ETFs. This came at the expense of Value ETFs (-EUR118 million euros). 

Amundi writes that in terms of SRI, investors in the European equity ETF market favoured World SRI exposures that gathered +EUR524 million net new assets, but they also diversified their investments in US and North America (+EUR335 million nna) and Europe ETFs (+EUR332 million nna).
 
Inflows into Fixed Income ETFs by European investors amounted to +EUR3.6 billion in January 2020, of which +EUR1.6 billion were in Government Debt and +EUR2.2 billion in Corporate Debt. 

Within the Corporate Debt segment, investors demonstrated appetite for Eurozone corporate (+EUR737 million) and high yield USA (+EUR317 million) exposures.

On the Government Debt side, Emerging Market Debt (+EUR1 billion) and US Mid Govies (+EUR633 million) also attracted investors’ attention, in the detriment of USA short term debt ETFs, which suffered outflows of -EUR366 million.

Among European investors, SRI fixed Income ETFs kept on attracting steady flows, with close to +EUR222 million net new assets in January.

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Beverly Chandler
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