BlackRock Global ETP Flows : Flows moderate: flows into global ETPs moderated slightly in July to $88.1B, down from $99.8B in June, largely due to a slight drop off in equity buying.
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BlackRock Global ETP Flows July 2023
Laura Cooper, Senior Investment Strategist of iShares EMEA at BlackRock
Fixed income buying rises: equity flows fell from $76.9B in June to $59.7B in July, while fixed income buying rose slightly to $30.9B and commodity flows remained in negative territory, with a further $3.6B of selling.
A selective approach: precision exposures were at the fore in July, with a broad rise in sector ETP buying amid Q2 earnings season, and India ETP flows hitting their second-highest level on record.
US leads the way in equities
Despite the drop from June, July still represented the second-highest inflow month this year for equity ETPs, against a backdrop of reduced equity allocations so far in 2023. As with June, US equity flows drove most of the buying ($38.6B), while emerging market (EM) equity flows stayed relatively stable ($11.1B), and Japanese equity buying fell from $7.8B to $2.6B.
International investors have started to meaningfully sell European equity ETPs over the summer. The exposure saw a fourth consecutive month of outflows, but the pace of selling slowed MoM to -$2.2B. US-listed European equities lost a further $0.9B in July.
Sector positioning in European equities has also shown signs of shifting. Outflows from European financials continued in July (-$0.3B), following the $0.7B out in June. We have seen positioning come off in European tech (-$0.2B) and healthcare (-$0.1B), while European materials notched a second consecutive month of inflows, with $0.1B added in July.
Credit on the cards
In fixed income, simultaneous inflows into investment grade (IG, $5.1B) and high yield (HY, $2.2B) ETPs continued for a second consecutive month in July, the first time this has happened since October-November 2022. In June, flows into IG were relatively equally split flows between listing regions, and this continued for EMEA and US-listed IG ETPs in July, with $1.8B apiece.
For HY, the trend was similar, with $0.8B into both EMEA and US-listed HY ETPs. US allocations were slightly down MoM, however, meaning that EMEA-listed ETPs accounted for a greater proportion of HY flows in July than in June.
Source: ETFWorld.co.uk
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