ETFs and ETPs listed in Latin America saw net outflows of USD5.61 million in January, bringing year-to-date net outflows to USD5.61 million. But assets invested in the Latin American ETF/ETP industry finished the month up 12.42 per cent, from USD8.44 billion at the end of December, to USD9.49 billion.
That’s according to ETFGI’s January 2019 Latin American ETF and ETP industry landscape insights report, an annual paid-for research subscription service.
“In January, equity markets rebounded from Q4 when global equities suffered steep declines amid persistent worries over trade and economic growth,” says Deborah Fuhr, managing partner and founder of ETFGI. “Fed chair Powell revised his stance on where he believes the neutral rate of interest lies, easing fears of a dramatic and painful tightening cycle. Energy’s decline during the Q4 rout subdued inflation in developed economies taking hiking pressure off central banks while provided stimulus to consumers and businesses, giving stronger core metrics. The S&P 500 finished January up 8.01 per cent, the best January since 1987, while the S&P Topix 150 gained 7.26 per cent and the S&P Europe 350 gained 6.23 per cent. Emerging and Frontier markets were up 7.77 per cent and 4.61 per cent respectively, hampered by dollar strength.”
By the end of January 2019, the Latin American ETF/ETP industry had 49 ETFs/ETPs, from 35 providers listed on 5 exchanges. Following net outflows of USD5.61 million and market moves during the month, assets invested in the Latin American ETF/ETP industry increased by 12.42 per cent from USD8.44 Bn at the end of December, to USD9.49 Bn.
Equity ETFs/ETPs listed in Latin America attracted net inflows of USD43.54 million in January, bringing net outflows for 2019 to USD43.54 million, substantially less than the USD104.79 million in net inflows equity products had attracted by the end of January 2018. Fixed income ETFs/ETPs listed in Latin America saw net outflows of USD4.90 million in January, bringing net outflows for 2019 to USD4.90 million, greater than the USD3.44 million in net outflows fixed income products had attracted by the end of January 2018.
Substantial inflows can be attributed to the top 10 ETF’s by net new assets, which collectively gathered USD454.94 million in January, the It Now Ibovespa Fundo de Indice (BOVV11 BZ) gathered USD147.19 million alone.