Challenging times

Markets continue to surprise, and Cerulli Associates writes that the ETF market, along with much of the rest of the finance industry, is now struggling with rising inflation, central bank rate hikes, and fears of recession. Europe’s ETF industry players need to adjust to challenging times, the firm says, having conducted their ETF industry survey. Thematics will continue to entrance, when there is a compelling long-term story, the firm says, and actives are coming into their own.  

BlackRock’s monthly global ETP numbers revealed that October saw a surge of inflows into ETPs, triple the amount added in September, and the first time since March that monthly ETP flows have surpassed USD100 billion.

The firm writes that equities and fixed income were in favour: equity flows increased from USD31.6 billion to USD79.0 billion in October, while fixed income allocations increased to USD34.2 billion from USD13.0 billion in September.

Fixed income dominated in our interview this week, which saw Gill Wadsworth talking with the US’s Angel Oak’s Ward Bortz about their entrance into the structured credit ETF space with the release of its UltraShort Income ETF.

Within the week, the firm had launched its second actively managed ETF, Angel Oak Income ETF (NYSE: CARY), designed to provide investors with the opportunity to invest primarily across US structured credit with a strong bias toward residential mortgage credit.

Other news this week came from the Index Industry Association which published its sixth annual benchmark survey, observing that ESG still dominates in the index world, along with fixed income. The convergence of these two major trends over the last three years has resulted in the number of ESG fixed income indexes increasing by a record 95.8 per cent, smashing the previous record of 61.09 per cent in 2021. 

Next week sees a live outing for me with Kevin T. Carter of EMQQ fame on the Asset TV sofa.

Register to join us and, indeed, join in, by following this link.

Beverly Chandler, Managing Editor

For live updates please follow us on Twitterand LinkedIn.

Companies in this issue

Angel Oak Capital Advisors
BNY Mellon
Cerulli Associates
First Trust
Index Industry Association


BlackRock reports that asset allocation conviction returned to global ETPs in October, with USD111.5 billion of inflows into global ETPs – triple the amount added in September, and the first time since March that monthly ETP flows have surpassed USD100 billion.
A difficult 2022 so far and slow growth forecasts mean managers operating in Europe’s ETF industry will need to prioritise strategic activities, according to the latest Cerulli Edge—Global Edition.
Gill Wadsworth writes that a new competitor has entered the structured credit ETF space and amassed USD34 million in its first round of fund raising.
The Index Industry Association (IIA), the industry trade group for the global independent index provider community, has announced the results of its sixth annual global benchmark survey, revealing that the number of indexes globally increased 4.43 per cent in the last year, led again by ESG indexes which grew to new records.


Global ETF Launches
ETFs focused on producing income have dominated the launches this week with every type of method of producing income from bonds applied to funds as investors increasingly turn to fixed income.
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