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.
Japanese equity ETFs saw strong demand from European investors in October, although overall global flows into the asset category were negative as Asian buyers made redemptions.
Bond ETFs have been attracting strong inflows over recent weeks, despite high expectations of another rate hike by the US Federal Reserve at this month’s meeting. The growth in smart-beta fixed income offering and a better understanding of the products is drawing investors to passive bond exposure.
On Tuesday 15 March, during the Edhec Risk Days that took place at the Brewery in London, the first TrackInsight award ceremony rewarded the four most efficient blockbuster ETFs in major exposures widely used by institutional investors.