The first half of the year has seen a turnaround in the fortunes of many global assets, as fears of a global trade war and concerns over the political future of the Eurozone dominated the news pages and affected sentiment for European assets.
Investors have been less keen on exchange traded funds lately as a result of market volatility in some of the most popular investment areas, with total assets invested in the sector globally decreasing by a record $180.1 billion in February, according to ETFGI.
Investor sentiment towards various geographical regions has been driving their investment decisions so far this year, with some of the best performing equity markets failing to gain the support they deserve, while underperforming developed equities have taken in the bulk of the money.
Assets held by the European ETF industry increased for a sixth consecutive year and marked a new all-time high at €631.2 bn at the end of December 2017.
Bond ETFs have enjoyed massive popularity over the past few years and total assets now already stand at $750bn, but BlackRock is predicting this figure could double by 2022 as demand continues to grow.
The promoters of ETFs enjoyed net inflows (+€6.6 bn) for September. This was a significant increase compared to the net inflows of €3.1 bn for August but still below the rolling 12-month average of €6.7 bn.