ETFs investing in UK equities are down 2.9% over the last month after the fall of Sterling currency, lower-than-expected inflation data and the Bank of England’s hesitation to raise interest rates one year after Brexit.
Inflows into India-focused equity ETFs have turned positive over the last week in anticipation of further cuts to interest rates and an uptick in economic growth.
The latest annual ETF and smart beta survey from EDHEC-Risk Institute has revealed almost all ETF investors plans to increase their use of smart beta strategies over the coming three years.
A study of the UK intermediary market by product provider Source has found that a majority of UK independent financial advisers (IFAs) believe assets in the ETF industry will continue growing this year.
Institutional investors are allocating to ETFs more than ever driven by market volatility, concerns about liquidity in the bond space and a desire to take advantage of the latest bouts of outperformance, according to a study conducted by Greenwich Associates.
Equity ETFs fared much better than their active counterparts in 2016 gathering inflows just as active funds suffered withdrawals. The volatility caused by political events in the UK and US could be partly to blame, as Lipper believes investors are opting for shorter-term plays on the stock market.