Fixed income ETFs garner record net $9.4bn inflows in January

Strong demand for Euro-denominated assets

Fixed income ETFs had the strongest month for net inflows on record in January, beating the buying seen in April 2020 following the aggressive central bank response to the pandemic.

According to figures by Invesco, last month saw strong demand for Euro-denominated assets, with Euro investment grade credit the strongest category, adding $4bn, followed by Euro government bonds, which attracted $2bn.  Paul Syms, head of EMEA ETF fixed income product management at Invesco, said that investors broadly favoured USD-denominated bonds last year to avoid the Russia-Ukraine conflict and the impact of higher energy prices on the eurozone economy.  However, he noted they are now returning to Euro-denominated bonds, particularly investment grade credit where spreads are tradi...