Volatility spurs bond ETF sales

bond ETF salesBond exchange-traded funds (ETFs) appeared to benefit from equity outflows in April, as volatility stalked markets.

Investors pulled €1.3 billion from equity ETFs domiciled in Europe, but they put the same amount into bond ETFs, data from Thomson Reuters Lipper shows.

Nevertheless, the best-selling Lipper global classification for April was ‘equity US’ with €1.5 billion of investments, followed by ‘equity emerging markets global’ with €800 million.

The third largest was UK equities, with €500 million.

Total net flows in April, which reached just €400 million, were described as “sluggish” by Detlef Glow, regional head of research at the firm.

“The increasing volatility took its toll on ETF flows during April. After weak flows during March, April was another sluggish month with regard to flows in the European ETF industry,” he said.

Commodity ETFs were the second best sellers overall, at €400 million.

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