Amundi’s ETF flows report for October finds that since the beginning of the year, the global ETF market has experienced total inflows of EUR238 billion as of end of October 2016, with quite balanced inflows between Equity (EUR105 billion YTD) and Fixed Income exposures (EUR106 billion YTD).
The firm writes that in October, inflows have been largely dominated by equities exposures (EUR14.5 billion YTD) versus Fixed Income (EUR4.6 billion).
On the European ETF market, investors’ appetite since the beginning of the year has strongly been in favour of fixed income exposures (EUR25.2 billio YTD) versus Equities (EUR5.5 billion YTD) over the EUR33 billion inflows observed. However, the trend shifted in October with a vast majority of monthly flows captured by equity ETFs (EUR2.8 billion) at the expense of bond ETFs (EUR747 million).
In the equity field, flows in October still focus on Emerging Markets (EUR740 million for regional exposures) – of which almost 60 per cent were captured by Amundi ETF – followed by Global equities (EUR238 million). At single country level, flows are coming back to Japan with currency hedging (EUR210 million MTD), and UK continues to attract (EUR138 million MTD), with currency hedging as well.
Flows on fixed income exposures are mainly concentrated on Eurozone Inflation-linked bonds which surpassed Emerging Market Govies for the first spot this month, with respectively EUR355 million and EUR313 million MTD. On the corporate side, investors massively favoured the Eurozone (EUR803 million), while Floating Rate Notes continue to get traction: EUR290 million MTD, with a strong interest on the Amundi ETF Foating Rate Notes range.
In the Govies space Peripheral Eurozone bonds and Global bonds saw outflows (minus EUR251 million and minus EUR179 million MTD). In the corporate universe outflows were concentrated on Eurozone covered bonds (minus EUR120 million MTD) and Global High Yield (minus EUR65 million MTD).
