Emerging markets and US attract ETF flows

Exchange-traded fund (ETF) investors continued to move out of Eurozone equities last month, favouring emerging markets and the US. According to data from Amundi, emerging market equity ETFs saw €1.15 billion of inflows in August, whereas US equities attracted €485 million. However, Amundi said that Eurozone equity ETFs were still seeing outflows. Net redemptions were €390 million and €37 million for unhedged and hedged share classes, respectively. A similar pattern emerged for fixed income ETFs, with investors piling into emerging market government debt to the tune of €1.80 billion. In the sovereign space, a lack of yield or negative yields in some cases, saw investors pull €252 million from “broad maturity” Eurozone government bonds and €112 million from shorter maturity bonds. Investor interest was split between Eurozone corporate bonds – which attracted €519 million in new money – and the US, which saw €474 million in new money. One area of the corporate bond space that has failed to continue its earlier resurgence is US high yield, which saw outflows of €233 million last month. ©2016 funds europe

Executive Interviews

EXECUTIVE INTERVIEW: This is the year

Feb 16, 2017

Mark Weeks, head of ETF Securities, reflects on Brexit’s trampling of the FTSE and tells Nick Fitzpatrick he hopes to see stock and bond inflows top commodities for the first time this year.

EXECUTIVE INTERVIEW: A natural interest in the topic

Feb 16, 2017

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.

Roundtables

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.

EMERGING MARKETS ROUNDTABLE: The re-emergence

Jan 03, 2017

2016 was the year emerging markets returned to the spotlight, as they regained ground since the 2012 sell-off. Funds Europe asked our panel if this appetite will persist in 2017.