North American stocks tracked by ETFs around the world may have gained inflows since the market dip earlier this year despite a chaotic White House and uncertain market policy, but returns remain lacklustre.
While US-based investors have been fleeing equity ETFs throughout February, especially in their home market, European buyers have remained resilient despite the volatility. However, overall equity ETFs have seen over €4bn of outflows during the month, as a general risk off mood has spread across markets.
Multi-factor ETFs have gained solid inflows since the February dip as investors are keen to diversify and avoid market timing.
European ETFs have suffered outflows since the beginning of March, as investors have been spooked by a double whammy of a potential trade war between the US and EU and the rise in support for populist parties in Italy. Investors have been taking money out of European equity products on the back of these fears, with €906.2 million leaving the asset class since the start of the month, TrackInsight data shows.
ETF investors are piling out of Russian-focused exchange traded funds amid allegations from Vladimir Putin that the US is meddling with its upcoming presidential election.
High yield exchange traded funds are reflecting investors’ growing concerns over the fixed income space, with short interest in these vehicle reaching a new record in February, according to data from IHS Markit.