The global ETF market experienced a sharp slowdown in October, with investment flows declining to EUR7.5 billion from EUR42.9 billion in September, according to Amundi ETF’s latest monthly ETF Market Flow Report and the latest YTD ETF Market Flow Report.
Of that EUR7.5 billion, EUR6.3 billion went into equity ETFs and EUR2.1 billion into bond ETFs.
During the first 10 months of 2018, ETF market inflows totalled EUR315.7 billion worldwide, of which EUR221.9 billion went into equities and EUR91.4 billion into bonds.
In October, in the European market, equity ETF arbitrage led to a net outflow of 451 million euros. These divestments focused mainly on global exposures. The markets benefiting from these types of trades were Eurozone, North America, Europe, and Emergings.
Within the bond markets, investors exercised caution. Allocation decisions implemented in October clearly prioritised sovereign bonds (+EUR1.1 billion), at the expense of corporate bonds (-EUR827 million).
