BlackRock Global ETP Flows : In June, $128.1bn flowed into global ETPs, the second highest inflow this year.
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BlackRock Global ETP Flows June 2024
Karim Chedid, head of investment strategy for iShares EMEA at BlackRock
Commenting on the report, Karim Chedid, head of investment strategy for iShares EMEA at BlackRock, said:
“In June, $128.1bn flowed into global ETPs, the second highest inflow this year. The increase was primarily driven by equity ETPs, with the majority of inflows into US equities. There was also a notable increase in international purchases of European equity ETPs, with inflows into US-listed ETPs outpacing those into EMEA-listed ETPs. This trend reflects a positive development triggered by the end of earnings stagnation and better macroeconomic data in Europe. Fixed income inflows reached USD 12.5bn, dominated by US Treasuries, indicating a clear preference for targeted duration exposures. Inflows also continued in European fixed income, with purchases across mixed maturities.”
- A steady rise: $128.1B was added to global ETPs in June, the second-highest inflow month this year, and up from $116.4B in May.
- A tilt towards equities: the pickup in flows was largely driven by equity ETPs ($90.0B), while fixed income flows moderated to $34.9B and commodities notched up their second consecutive inflow month, with $1.3B added.
- Precious gains: precious metals have been in focus, with a second consecutive month of inflows into gold ETPs, alongside net buying of silver ETPs after outflows in the prior two months.
Geographic diversification
While US equity flows moderated to $51.2B in June, emerging market (EM) equity flows picked up, with a marked increase in Mexico and India equity ETP buying post-election, while European equity ETP flows remained steady at $2.5B.
Flows into EMEA-listed EM ETPs reinforced the single country preference for international investors: India led, with $0.7B of inflows, while $0.4B was added to Mexico ETPs – the highest monthly inflows for EMEA-listed Mexico ETPs on record.
The trend of international buying of European equities continued into June, with a slight shift vs. May: in June, US-listed inflows ($1.3B) outpaced EMEA-listed inflows ($0.9B).
Rates rule again
Rates led overall fixed income flows again, with $12.5B added in June, in line with May’s inflows. US Treasury (UST) flows led, as usual, but flows into European rates also continued. The vast majority of European rates buying went into blended maturity exposures, while UST ETP flows showed more of a preference for targeted duration exposure, with three consecutive months of inflows into short-duration USTs, and long-duration also remaining popular.
Investment grade (IG) credit flows also rose to the highest level since January, with $7.8B added, which helped offset the fall in high yield (HY) flows to flat on the month. Eurozone IG flows rose to the highest level since February, at $1.4B, while US IG flows rose to $5.4B.
Emerging market debt (EMD) also notched up a third consecutive month of inflows, with a further $1.6B added. Under the surface, it was a second consecutive month of flows into EMEA-listed EMD, with $0.4B added in June following the same figure in May.
A glint of gold
Gold notched up a second consecutive month of inflows for the first time in a year, with a further $1.3B added in June. This went entirely into EMEA-listed ETPs, with APAC-listed inflows and US-listed outflows netting out over the month.
This follows a cumulative $24.1B of selling from June 2023-April 2024, which moved in contrast to the gold price –especially in 2024, with central bank buying underpinning the price momentum.
Silver flows also picked up for the first month in three, with $0.3B of inflows, following a total of $1.0B of outflows in the prior two months.
Source: ETFWorld.co.uk
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