Assets under management in ETPs and ETFs globally have surpassed the $5trn mark after a record-breaking month of inflows in January 2018, with equity ETFs seeing particularly strong inflows before the sell-off that cooled some of the heat in the stock market at the end of the month.
The European ETF market saw assets soar some 40% in 2017, the best rate it has seen since 2009, and experts are predicting further boosts from various factors, including the introduction of the MiFID II regulation in Europe early this year.
US investors have started selling their exposures to European equity ETFs as a strengthening dollar is drawing attention to domestic assets, while European counterparts continue to buy into local equities. Elsewhere, US financials are on track for the biggest annual inflows since 2013.
Spanish stock ETFs have seen some small outflows following the controversial independence referendum in Catalonia, but the impact has been muted despite the shocking violence that ensued in the Spanish region and the number of headlines that have grabbed the news over the weekend.
Inflows into Europe-listed exchange traded products (ETFs) have considerably slowed down in August after a record 2017 so far, with all categories suffering subdued demand or even outflows.
Asia Pacific ETFs have been particularly popular with investors in June, according to data from Lyxor, as low valuations in the region attract inflows. This comes at a time when valuations in developed markets are reaching peak levels, while investors continue to look for higher returns.