Global ETF market stalls in October

ETPs fallThe global exchange-traded fund (ETF) market experienced a “sharp” slowdown in October, with investment flows falling to €7.5 billion from €42.9 billion in September.

The figures, contained in Amundi’s latest monthly ETF Market Flow Report, reveals that, of the €7.5 billion inflows in October, €6.3 billion went into equity ETFs and €2.1 billion into bond ETFs.

During the first 10 months of 2018, ETF market inflows totalled €315.7 billion worldwide, of which €221.9 billion went into equities and €91.4 billion into bonds.

In October, in the European market, equity ETF arbitrage led to a net outflow of €451 million. These divestments focused mainly on global exposures.

The markets benefiting from these types of trades were the eurozone, North America, Europe, and emerging markets.

Within bond markets, investors exercised caution with allocation decisions implemented in October prioritising sovereign bonds (+€1.1 billion) at the expense of corporate bonds (-€827 million).

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