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ETF investors bought into risk during first half

etfs_coronavirusETF investors piled into bond funds the first half of the year, taking advantage of economic stimulus measures.

US dollar global corporate bond funds were the second best-selling sector during the period which saw €16 billion overall invested in bond ETFs sold in Europe.

Global equities topped the sales list, according to Refinitiv data, but equities saw €1.4 billion of net redemptions in total.

Net inflows for European ETFs across asset classes were €17.4 billion by the end of June against a backdrop of political and economic uncertainty defined by the pandemic. ETF assets under management decreased by €40 billion to €830 billion over the January-June period.

Detlef Glow, regional head of research at Refinitiv, said: “Even as the economic outcome from the lockdowns is still unclear, investors returned to risky assets as governments and central banks started to stimulate the economies around the globe.”

Glow added: “This stimulus led to increasing stock markets and falling interest rates. That said, the inflows in ETFs could not offset the negative performance of underlying markets.”

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