Amundi’s ETF Market Flows Analysis for May finds that global ETF inflows were EUR105.1 billion with US-domiciled equity funds accounting for just over half of these flows and fixed income about a quarter.
Within the European UCITS ETF market, Amundi reports that, in equities, European UCITS equity ETFs gathered EUR17.7 billion in the month. Developed market world indices were the most popular equity strategy, gaining EUR4.8 billion while investors also added EUR4.7 billion to US strategies. Indices that covered all developed and emerging markets, equivalent to MSCI ACWI, attracted inflows of EUR2.8 billion.
Within fixed income, Amundi reports that government bonds dominated European UCITS fixed income inflows with sovereign debt gaining EUR3.7 billion. US-dollar denominated sovereign debt led the way with inflows of EUR2.6 billion. Amundi writes that in US fixed income, investors’ barbell approach continues: investors who think interest rate cuts are more likely to materialise added EUR0.7 billion to long-dated US indices, while those who think cuts to the cost of borrowing are not imminent allocated EUR1.4 billion to US short-dated strategies.
