Year-to-date exchange-traded fund flows have reached USD190.9bn globally and remain on track, despite modest September flows, to equal the record of USD262.7bn from 2012, according to BlackRock’s latest ETP Landscape report.
With uncertain global growth outside the US, investors turned to the US and broad developed markets, adding USD12.6bn to US large cap, USD3.1bn to broad developed equity and USD2.6bn to US aggregate bond funds.
Flows into emerging market equities slowed down globally, however evidence of further reallocation into this asset class was clear as Europe-listed and US-listed EM equity ETP net flows totalled USD2bn combined.
Fixed income outflows of USD2.6bn were driven by Treasuries as the end of Fed bond purchases nears and debate over the timing of interest rate increases persists. This trend seemed to be reversing at the end of the month when US-listed fixed income ETFs gathered USD7.3bn between 26 September and 3 October.
Europe-listed fixed income ETFs gathered USD0.2bn in the same period.