ETFs continued to enjoy strong inflows in March, adding to the record sales figures of the previous two months to make Q1 2017 the best quarter on record in terms of inflows. Developed market equities took in the bulk of the money.
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.
ETFs globally have seen record inflows this year, with investors pouring money into equity, fixed income and smart beta alike, but investors and regulators are now worried these vehicles could become the source of increased volatility in current uncertain markets.
The latest figures reflect investors’ ongoing concerns over the uncertainty looming over the UK and Europe in the run-up to the EU referendum and their changing expectations for a rate hike by the US Federal Reserve.