Fixed income ETF inflows outpace equities in Asia Pacific

Oct 25th, 2017 | By | Category: Fixed Income

ETFGI, an ETF industry consultancy, has reported that fixed income ETFs listed in Asia Pacific (ex-Japan) have proved significantly more popular with investors than equity ETFs during September. ETFs that track bonds have gained $835 million during the month compared to outflows of $1.0 billion seen by equity ETFs listed in the region.

Fixed income ETF inflows outpace equities in Asia Pacific

2017 has been a difficult year for ETFs in Asia Pacific, with outflows seen YTD in fixed income, equities and commodities.

Despite the strong inflows seen during the month, fixed income ETFs have struggled to attract assets in 2017, seeing net outflows of $127m in the year-to-date (YTD), compared to inflows of $2.9bn over the same period last year. Equity ETFs have experienced a similar fate, seeing YTD outflows of $1.6bn compared to outflows of $834m over the same period last year.

In total, ETFs domiciled in Asia Pacific gathered $262m in September. YTD inflows stand at $920m, well shy of the $7.9bn of net new assets gained over the same period in 2016.

Commodity ETFs have fared equally poorly, seeing net outflows of $60m during September. YTD outflows now stand at $398m compared to inflows of $942m seen over the same period last year.

Vanguard was the issuer that gathered the most new assets in the region during the month. The firm added $400m to its locally listedfunds, followed by Samsung AM with $336m and Yuanta with $220m.

YTD flows by issuer tells a similar story with Vanguard collecting $1.8bn, followed by Samsung AM with $1.3bn and Yuanta with $1.2bn.

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