Global year-to-date exchange-traded products (ETPs) flows of $192.3 billion have surpassed 2011’s full-year total of $173.4 billion with inflows of $9.5 billion added in October, according to the latest ETP Landscape report from BlackRock.
Global year-to-date ETP inflows have surpassed 2011’s full-year total, according to BlackRock.
ETPs encompass exchange-traded funds (ETFs), exchange-traded commodities (ETCs) and exchange-traded notes (ETNs).
ETPs listed in Europe generated $4.2 billion in flows, which represents 45% of total global flows in October, the highest ratio this year.
Flows were broadly distributed across exposures, including Gold. Flows into European-listed ETFs remained robust and diversified by asset class, making October the third consecutive month of flows greater than $4 billion
Dodd Kittsley, Global Head of ETP Research for BlackRock, commented: “Flows into European-listed ETPs as well as flows of $1.3bn into Pan-European exposures, regardless of where listed, suggest that fears of a near-term Eurozone break-up have subsided following ECB commitments to backstop sovereign bond markets.”
Investors in ETPs embraced emerging markets in October.
Emerging markets bond ETPs garnered $1.9 billion, the highest monthly total on record while emerging markets equity ETPs drew $6.7 billion in flows, spanning broad exposure ETPs with $2.0 billion, China exposure ETPs with $2.8 billion and Brazil exposure ETPs with $0.7 billion. Emerging Markets Equity ETP flows in 2012 are outpacing flows in 2011 by a wide margin.
Appetite for yield continues to drive flows into investment grade corporate bond ETPs, which absorbed $3.3 billion in October showing continued demand for enhanced yield balanced by credit quality.
Gold ETPs attracted $2.5 billion in October, building on robust flows the last two months. Gold ETPs have attracted $10.0 billion over the past three months.
Dodd Kittsley commented: “Investors maintained a degree of risk appetite in October, embracing emerging markets equities and bonds and investment grade corporates, yet hedged risks by putting money into gold.”