Fixed income ETPs see another record month as 2020 inflows begin to recover
US investors expand European equity exposure
Global ETPs have recorded their strongest month for inflows in 2020 as $71.5bn was added to the market, with fixed income buoying the industry providing $46.7bn of the total, according to the latest global ETP flows report from iShares.
June also saw investment grade fixed income break a record for the highest inflow month since records began, with $21.6bn invested, beating the previous record set in April by $8.3bn and bringing total investment grade inflows for Q2 to $47.1bn, itself a new record.
Global ETP flows remain positive despite $34.5bn fixed income outflows
This constitutes a "remarkable" change from Q1's net outflows of $0.2bn, the report said, and is owed mostly to US focused investment grade ETPs after eurozone products dropped off after an initial pickup early in Q2.
Equities also saw a strong June, with inflows of $3.7bn into European focused ETPs marking the largest positive flows since November 2019, of which $3.5bn came from US-listed European equities.
Emerging markets extended its "poor run", adding a further $4.9bn of net outflows in the final month of Q2, although this is only half the amount seen in the previous month, during which $9.4bn flowed from the exposure.
However, a tentative return to the space has been hidden by the headline figure, as the $6.2bn outflows from single-country ETPs overshadow the $0.8bn net inflows to US-listed emerging markets products and an additional $1.1bn, which flowed into broad emerging market equity.
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Value enjoyed a relatively strong month as it welcomed $1.6bn into the space, the largest monthly inflows since November 2019. June also marked the first positive month for EMEA-listed value ETPs, but US-listed products still took two-thirds of the flows.
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