Investment Strategies

Funds Still Flowing Into ETPs - BlackRock Report

Nick Parmée 2 November 2012

Funds Still Flowing Into ETPs - BlackRock Report

This month’s ETF Landscape Report, produced by the BlackRock Investment Institute, suggests that investor appetite for exchange-traded products remains strong - good news for the US giant as the owner of ETF provider iShares.

Year-to-date ETP flows of $192.3 billion have topped 2011’s full year total of $173.4 billion. ETP flows in October were $9.5 billion.

ETPs listed in Europe generated $4.2 billion in flows, which represents 45 per cent of total global flows in October, the highest ratio this year.

Flows were broadly distributed across exposures, including gold; flows into European-listed ETFs remained robust and diversified by asset class, making October the third consecutive month of flows greater than $4 billion.

And emerging markets also did well in October: EM bond ETPs garnered $1.9 billion, the highest monthly total on record. EM equity ETPs drew $6.7 billion in flows, spanning broad exposure ETPs with $2.0 billion, China exposure ETPs with $2.8 billion and Brazil exposure ETPs with $0.7 billion.

Investment grade corporate ETP flows led the fixed income category, absorbing $3.3 billion in October, showing continued demand for enhanced yield balanced by credit quality.

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