In August the global exchange-traded product industry attracted net assets of USD12.1bn, more than twice the USD5.3bn collected in August 2011, despite lower overall trading volume, according to BlackRock.
As of month end, global ETP assets totalled USD1.76trn, compared with USD1.72trn at month-end July and USD1.58trn at the end of August 2011.
During the month, ETP investors showed an increased interest in gold and volatility ETPs. With gold a natural beneficiary of a low interest rate environment, flows into gold ETPs reached their highest level in 2012, with USD3.6bn in net flows. Volatility ETPs, which seek to deliver returns correlated to measures of market volatility, attracted nearly USD1bn.
Fixed income drew USD6.5bn for the month with all major fixed income categories attracting net inflows, led by investment grade corporate with USD1.6bn and high yield with USD1.3bn.
The category has attracted USD50.8bn year to date, already surpassing 2011’s record inflows of USD49.9bn.
ETPs listed in Europe gathered solid flows of USD4.4bn – the highest monthly total since July 2011. They have attracted USD13.2bn since April, accounting for the majority of the USD15.4bn in year-to-date flows for the region.
Dodd Kittsley, global head of ETP Research at BlackRock, says: “The breadth of unique and precise exposures that ETPs offer has been a crucial factor in the industry’s strong ongoing growth. The flows reflect how ETP investors are repositioning their portfolios to act on market opportunities that they see emerging, even in the midst of global uncertainty.”