Global exchange-traded product inflows for August were $38.9 billion, bringing the year-to-date flows to $213.4 billion – marking a higher pace of growth than in the record-setting 2015, according to BlackRock.
The BlackRock Global ETP Landscape report for August showed a third month of inflows for emerging market equity exchange-traded products (ETP), gathering an additional $6.2 billion for August.
This is on target to set a new yearly inflow record for the emerging market equity category, BlackRock noted, with year-to-date inflows sitting at $22.9 billion.
Likewise, emerging market debt ETPs have broken the 2012 inflow record of $8.3 billion after August’s additional $1.9 billion brought year-to-date inflows for the category to $12.7 billion.
These trends sat in stark contrast with European ETPs, which saw outflows during the month.
“Pan-European equities shed $2.7 billion and German equities shed $1.1 billion as earnings continued to deteriorate and inflation remains stubbornly low,” BlackRock explained.
In the US, preferred stock funds experienced a record month, receiving $1.1 billion inflows, marking a year-to-date gain of $5.2 billion, BlackRock said.
Fixed income ETPs were also experiencing strong inflows throughout 2016, BlackRock added.
“2016 year-to-date flows for fixed income through August grew to $95.1bn and have already surpassed the full-year 2015 total of $86.8,” the company said.
“Investment grade corporate debt funds are a significant contributor. A number of factors have aided flows to the category.”
These factors include the US Federal Reserve continuing to “signal a rate rise on the horizon”, the above record-pace of Europe-listed investment grade corporate bond flows and investors seeking high-quality yield “in light of low and negative yields globally”.
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
Despite the Australian economy’s ongoing rapid recovery, an Australian equity head believes GDP growth will “fade” in 2022. ...
The next financial year could see a “new record year” for dividends as the Australian economy continues its recovery from the COVID-19 p...