The BlackRock ETP Landscape report for the end of May 2015 saw USD18.3 billion flowing into global ETPs in May, bringing year to date asset gathering to USD123.8 billion. However pan-European ETFs had their lowest inflows for six months with just USD1.6 billion coming into the sector.
US equity ETFs saw USD0.4 billion come in after heavy outflows in April, while Japan stayed steady with USD5.8 billion in flows.
Emerging market equity ETFs saw inflows for the second month in a row, at USD2.7 billion and fixed income flows were flat overall but remained ahead of 2014’s record breaking pace.
US investment grade bond ETFs gather USD0.9 billion and emerging market debt USD0.5 billion, while US Treasuries ETFs saw outflows of USD2.8 billion.
Ursula Marchioni, Head of ETP Research at BlackRock says: “2015 has been so far dominated by two trends: outflows from US equity exposures and inflows into most of the other developed equity markets. ETPs giving exposure to Europe, Australasia and developed markets in the Far East have seen cumulated inflows of USD35.8 billion year to date – USD4.2 billion of which in May alone. Within this trend, Japanese equity ETFs have been particularly popular, as part of a stock market surge that’s pushed the Nikkei 225 to its highest level since 2002.”
Marchioni believes that looking at the May monthly flows, their ETP data suggests that investors’ attraction for European equities might start to cool. “Pan European equity funds continued to see inflows, but at a slower pace than over the past six months. The majority of inflows came late in the month, following news that the ECB could conduct its bond purchases earlier than anticipated,” she says.
“Flows into global fixed income ETFs remain greater than in 2014, which was a record year for the asset class. Nevertheless, flows have been volatile – mostly driven by investors’ uncertainty about the timing of a US interest rates increase.”