Emerging market equity ETPs record first positive flows since January
Gold sets another record
Emerging market equity ETPs have seen their first net inflows since January, with $2bn flowing into the asset class globally over July, according to the latest global ETP flows report from iShares.
Money was added to the space across regions, as opposed to June's strong APAC-domiciled focus, although single country products were the "main beneficiaries", with China "in particular" benefiting.
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US equity ETPs suffered the opposite fate, recording its first net outflows since August 2019, as $2.2bn left the asset class, driven by US-listed products, which negated the inflows of EMEA- and APAC-listed US equity products.
The vast majority of European equity ETPs were bought by Europeans themselves, as EMEA-listed products comprised 90% of the total $2.9bn global net inflows, with a focus on large cap and broad market exposures.
Also suffering a change in fortunes was government debt, as flows to rates ETPs turned negative for the first time since February 2019, recording $1.3bn net outflows. This was driven largely by a flight from US Government exposure, which totalled negative flows of $1.7bn, along with single country European rates, only tempered by inflows to eurozone and global rates exposures.
Following a record month in June, flows to investment grade credit halved to $10.8bn, again due to a shift from US exposure, while high yield inflows increased to $7.3bn.
Emerging market debt remained steady, down slightly at $1.8bn positive flows, with an "overwhelming" focus on hard currency.
Gold ETPs set another monthly record, receiving $9.3bn inflows, just nudging out April's previous record of $9.2bn, while silver also continued to set records, totalling $1.5bn in July, far beyond May's record of $0.3bn.
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The commodity has now recorded total net inflows year-to-date of $4.8bn, a figure larger than the total net inflows from 2013 to 2019.
Sustainable products persisted to attract investors attention, adding a further $5.1bn net positive flows in July, with 63% of July's flows coming from EMEA-listed products, while global inflows have already surpassed 2019's record annual total of $27.2bn, seeing $33.5bn enter the space year-to-date.
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