$10B flowed into EMEA-listed ETPs with fixed income
Key themes this month
1. Income fix: Fixed income leads inflows
2. Held in high esteEM: Largest ever monthly inflow into emerging market (EM) equity ETPs
3. A golden start: Gold ETPs in favour
Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed. Unless otherwise stated all data is sourced from the BlackRock Global ETP Landscape at 31 January 2019.
1. Income fix
- Emerging markets were the talk of the town in January, as the exposure led fixed income inflows. Investors allocated $2.7B to emerging market debt (EMD) ETPs, the largest ever monthly inflow into the exposure. Investor interest in EMD was mixed in 2018, with net inflows for the year totalling $2.7B – which has already been equalled in 2019.
- Rates (government bond ETPs) continued their popularity into 2019 with $2.5B of inflows in January, albeit down from a bumper $3.9B in December. Inflows within rates ETPs were fairly evenly split between intermediate and short term focused ETPs, while long term focused ETP inflows were flat across the month.
- Investment grade ETPs reversed December outflows of $0.5B with inflows of $0.8B in January – the largest monthly inflow since December 2017. High yield also started 2019 in positive territory with $0.4B of inflows in January, off the back of $0.9B of outflows across 2018.