The promoters of ETFs enjoyed high net inflows over the course of first half 2017. In combination with positive market performance the assets under management in the European ETF industry increased for H1-2017.
European-listed exchange-traded products (ETPs) have seen another strong month in May, drawing in $11bn in inflows, as investors flocked to European equities after the reassuring result of the French presidential election.
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.
Amid global market uncertainty and a rising focus on costs, fund groups with a strong passives business are winning. The latest quarterly Pridham Report has shown that BlackRock, traditionally known for its strong passives offering, has triumphed in terms of net sales in the quarter.
ETFs continued to enjoy strong inflows in March, adding to the record sales figures of the previous two months to make Q1 2017 the best quarter on record in terms of inflows. Developed market equities took in the bulk of the money.
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.