ETF Snapshot: Flows into US large-cap ETFs reach fresh high before market sell-off

€12bn inflows last week

US large cap ETFs saw record inflows in the week ending 26 January as investor bullishness on President Donald Trump's tax reform reached peak levels.

However, concerns over central bank policy and higher-than-expected inflation caused global bond markets to sell off on 29 January with 10-year Treasury yields rising to 2.73%, their highest point since April 2014, while two-year Treasury yields reached the highest level since September 2008, climbing to 2.16%. Fears of contagion risk spread to equity markets with the S&P 500 subsequently suffering its worst weekly performance in two years last week, falling 3.9%, while the Dow Jones lost 4.1%.  Prior to the sell-off, US large caps saw inflows of €12bn, the most on record, building on...