European investors are showing more interest in ETFs this year, with flows into European-listed products so far this year to the end of July breaking past the record net sales seen during the whole of 2016.
Investors are continuing to put money into bond ETFs despite the sector suffering a sell-off in recent weeks, with most fixed income ETF categories delivering a negative return over the first six months of the year.
ETFs have been the driving force behind recent market gains in the US, but don’t expect the S&P 500 to end the year higher than current levels, new research has warned.
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.
As investors gear up for another possible hike to interest rates in the US, ETF investors have been surprisingly keen for both shorter and longer-term debt.
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.