ETP flows drop in April while sustainability rebounds

ETFs and similar exchange-traded products (ETPs)  experienced lower inflows in April, but sustainable funds rebounded and emerging markets remained in favour. 

iShares said the ETF industry’s flows were $53 billion, down from $65.1 billion the month prior.  

The month saw net flows into fixed income down by $12.5 billion compared to March, although there was some pick up in corporate bond products. Commodity flows were flat, similar to $1.6 billion the previous month. 

Laura Cooper, senior investment strategist for iShares Emea at BlackRock, said investors were more cautious in April compared to the first quarter of this year.

“That said, there were pockets of risk-on sentiment throughout the month with emerging market equity allocations leading the way, accompanied by a continued rotation towards European equity ETPs by US investors,” Cooper added. 

Data revealed allocations into emerging markets remained steady in the month. This year has seen international investors favour broad allocations in emerging market equities every month except January. 

And healthcare ETPs also witnessed a rise, with a total of $3.2 billion added to healthcare sector ETPs in April. 

April saw sustainable funds back in favour across the US and Europe after heightened volatility in March, with total inflows of $2.9 billion. 

Europe saw flows related to sustainability rising to $3.5 billion in April, up from $1.9 billion in the previous month, with ESG-screened products leading the way. 

© 2023 funds europe

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