Flows into the global ETF market saw a strong recovery in November, totalling EUR53.1 billion, of which 44.7 billion came from the US market and 3.2 billion from the European market, according to the latest data release by Amundi.
Amundi says that investors returned in full-force to equity markets in November, with equity ETF inflows totalling EUR37.2 billion euros globally. Bond ETFs also bounced back, with +EUR15.4 billion. This meant that the global ETF market profited from EUR53.1 billion of total inflows in November, after attracting just EUR7.5 billion in October.
In Europe, inflows amounted to +EUR3.2 billion in November, compared with 534 million for the previous month. European investors showed a preference for equity ETFs (+EUR2.6 billion) over bond ETFs (+EUR911 million).
In the European ETF market, investors were wary of Eurozone and European equity ETFs, which suffered from more than one billion euros of withdrawals in November.
European investors piled EUR2.9 billion into ETFs exposed to US equities, and EUR1.2 billion into global equity ETFs. Smart Beta ETFs also proved popular, attracting EUR1.1 billion of inflows, of which 569 million went into Minimum Volatility strategies.
In the fixed income sector, as European investors reduced their expectations about rising interest rates and inflation, inflation-linked and floating rate note ETFs saw redemptions. Investors also reduced their exposure to corporate bond ETFs (-EUR319 million), though they maintained their investments in Eurozone and high-yield corporate bonds. Investors increased their exposure to sovereign bond ETFs (+EUR1.5 billion), diversifying these investments geographically across the Eurozone, North American and emerging markets.
