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.
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.
Equity ETFs fared much better than their active counterparts in 2016 gathering inflows just as active funds suffered withdrawals. The volatility caused by political events in the UK and US could be partly to blame, as Lipper believes investors are opting for shorter-term plays on the stock market.