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US ETF investors “look to Europe”

BlackRock data shows that exchange-traded products (ETPs), which includes ETFs, had inflows of $52.6 billion (€59.8 billion) in November – the vast majority into equity funds.

The flow pattern reflected more interest from US investors in European equities, the firm said.

Noting that European equity ETPs had seen 15 consecutive months of inflows, Patrick Mattar, of BlackRock’s iShares regional capital markets team, said: “For the first time since July, US-listed European equity funds also had inflows, adding $716 million.”

This inflow to US-listed products coincided with a rally in the euro/US dollar trade – that is, as the euro strengthened against the dollar, US investors have looked to Europe.

Overall $40.9 billion went into equity funds at the global level, leaving year-to-date equity fund flows at $404.5 billion.

The main flows in November were to US and broad developed markets equities.

US equities drew in $17.4 billion, including $5.5 billion across cyclical sector funds, said BlackRock.

Fixed income funds captured $11 billion during the month, led by investment grade corporates with $4.1 billion.

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