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NEWSLETTER

Flows

ETF Express 21.05.21

etf express beverly chandler captioned.jpgA flood of flows hits us this week, with ETF flow stories from all the great and the good with BlackRock, Lyxor ETFs, Refinitiv, Global X and Tradeweb all reporting pockets of record-breaking ETF asset growth. While BlackRock reported global flows were down, flows into European ETFs appeared to come out ahead of the US.  

At the heart of the European ETF business, lies Clearstream and its Fund Centre and we have an interview this week with Bernard Tancré, CEO, who reports double digit growth in ETFs demand across Europe. “My view is that there is a rebalancing ongoing at the moment, with the real appetite for passive products versus active products now rebalancing between the two. It’s also an easy first entry point into the domain,” he says. 

The appetite for the growth factor, which has dominated investment over the past few years, has led to the surge in those ‘growthy’ stock sectors, such as disruptive technology and biotech, which lies behind a lot of the new thematic ETF launches.  

Watch out because the growth theme is on the wane, at least in Europe, according to the data from Lyxor ETFs, which sees value coming back into play. This is borne out by the results from disruptive innovation and contrarian sometime star investor ARK, which has seen months of under-performance since last November. More recently, ARK, and all the cryptocurrencies, have been hit by the vicissitudes of a market vulnerable to the apparently casual and Twitter-based comments from Elon Musk. Musk has pulled Tesla out of accepting payments in bitcoin, due to ESG concerns, and we report on this and ARK’s typically contrarian reaction, plus another view from digital custody firm Komainu’s Henson Orser.  

Bradley Duke from ETC Group has also covered the ESG, or lack of, in cryptocurrency investments in a very detailed blog post, which you can read here.  

More recent news in the week saw bitcoin swing down 30 per cent, and then recover to minus 8 per cent, on the back of the news that the Chinese had signaled a crackdown on cryptocurrencies, declaring that a virtual currency is not a real currency. This, of course, can have nothing to do with the planned launch of their own cryptocurrency, a virtual renminbi.  

And back in the regular international markets, they have also seen slightly more uncertain times, as witnessed by Columbia Threadneedle’s Marc Zeitoun, who shares with us that DIAL, his strategic beta multi-sector fixed income ETF, has seen its assets rise to over USD1 billion, with USD500 million of net new inflows in the past six months. “The fund was built to generate an income in an uncertain rate environment and it is proving its metal here,” Zeitoun says.  

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Beverly Chandler
Managing Editor, ETF Express

Companies in this issue  
ARK Invest  
BlackRock  
Columbia Threadneedle  
Clearstream Fund Centre  
ETFMG  
First Trust  
Global X   
iShares  
Komainu  
LGBTQ Loyalty Holdings  
Lyxor ETFs  
Ninepoint Partners  
Refinitiv  
Simplify  
Strategy Shares  
Tabula  
Tradeweb  
Valour  
Wisebitcoin 

 

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