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.
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.
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.