European and emerging market equities help drive ETP flows

Global payInflows to European equity funds helped drive exchange-traded product (ETP) sales globally in May as US investors looked for relative value outside their country.

Fixed income inflows also drove sales, according to BlackRock data.

In total, ETP flows across all asset classes reached $20.8 billion (€15.2 billion), according to BlackRock, which owns ETP provider iShares.

ETFGI, an independent data provider, calculated net inflows to be $22.4 billion.

European equities gathered $4.6 billion helped by expectations for European Central Bank stimulus, says BlackRock. Meanwhile, US equity outflows totalled $5.1 billion as small-cap redemptions offset momentum for large-caps, energy and real state.

However, global fixed income inflows were higher than those for European equities, at $14.1 billion, as people sought longer duration US treasuries and investment grade corporate funds. Demand also extended to categories offering enhanced income such as high yield and emerging markets debt.

BlackRock’s data also show that emerging market equities took in $2.7 billion as the MSCI EM index continued to rebound.

ETP assets under management at the end of May in Europe totalled $459 billion, a record, according to ETFGI.

©2014 funds europe