Safe haven areas of the market are once again in the spotlight after North Korean leader Kim Jong-un threatened the US with the “nuclear button”.
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.
Investors are taking profit from commodity ETPs as hopes around US infrastructure and Chinese economic activity fade.
Investors are exiting defensive trades like utilities, min vol and consumer staples as VIX drops to record low. Yet these asset classes are still producing healthy returns.
Emerging market equity and commodity ETPs saw inflows following the Federal Reserve’s decision last week to raise interest rates once again, despite these areas of the market being traditionally considered interest rate sensitive and often suffering redemptions around rate hikes.
The monthly overview of the European-domiciled ETP industry has shown investors have become bullish on markets, with continued inflows into equities in favour of fixed income. Overall, European-listed funds have seen the strongest monthly inflows since August 2015.