BlackRock Global ETP Flows : Flows into global ETPs dropped month-on-month to $74.8B in November, from $121.0B in October.
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BlackRock Global ETP Flows November 2022
Stock-ing filler: while fixed income flows remained relatively steady at $33.7B for the month, equity flows almost halved from $84.9B in October to $43.2B in November.
Flows unwrapped: in November fixed income flows, credit ($17.1B) outpaced rates ETPs ($11.9B) for the first time this year.
Hark! The high yield angels sing
After a lacklustre year for conviction in asset allocation, the resurgence in credit flows has been remarkable. High yield (HY) – which was on track for a record outflow year with a cumulative outflow of -$21B as recently as 21 September – is now only -$5B out for the year. Meanwhile, investment grade (IG) flows have risen to $36B for the year, from $23B as of 21 September.
In November, HY inflows continued with $7.0B added – slightly down from the $7.8B added in October – while IG flows rose from $3.4B in October to $10.1B in November.
When focusing on geographic exposure, in European credit the conviction continues to lie with IG over HY, with $3.0B into EUR IG in November (up from $2.5B in October) and $0.3B into European HY. For US credit, HY accounted for a larger slice of the pie, with $6.7B of inflows in November vs. $7.2B into IG.
All I want for Christmas is EU?
The drop off in headline equity flows was once again due to US equity allocations falling month-on-month, with inflows dropping to $21.4B from $57.5B in October. Emerging market equity allocations increased to $11.7B – the highest monthly inflow since April – while European equity outflows of -$1.7B were the largest since August.
European equity net flows are now at -$16.5B YTD, including a cumulative -$27B out since March, vs. net selling of -$27.2B over 2021. Investors have been turning away from broad European equities – November’s outflows were primarily out of large caps – but pockets of selectivity persist. Midcaps gathered $0.3B in November.
Healthcare with your flows so bright
Sector flows tilted slightly more defensive in November, with outflows from financials, energy and industrials in the last week of the month skewing the headline monthly figures. Healthcare once again led inflows, with $3.1B added in November, followed by tech, with $2.2B. Financials flows turned negative due to selling late in the month (-$0.4B), while energy notched up a second consecutive month of inflows with $1.0B added.
In factors, value notched up a second consecutive month of inflows in November ($1.5B), following on from the $0.6B added in October. While absolute inflow levels remain low, value’s reversal comes after four consecutive months of outflows from June to September. Quality remains the most popular factor YTD, with a further $1.7B added in November, while min vol flows slowed to $0.5B.
I’m dreaming of a green Christmas
Sustainable inflows picked up in November, with $7.3B added across US- and European-listed ETPs. Europe increased its flows from $4.2B in October to $6.5B in November, while the US reversed the previous month’s net outflows to post $739m of inflows in November.
Within Europe, fixed income accounted for the majority of sustainable flows: the $3.7B added in November marked the highest monthly inflows for the asset class this year, outpacing July’s $3.6B. Fixed income flows were mainly driven by ESG best-in-class strategies ($3.4B), split across eurozone, US and global exposures. Equity flows in Europe matched 2022’s monthly average, at $2.8B, and were also largely driven by best-in-class strategies ($1.5B), led by US and global exposures.
In the US, sustainable inflows were dominated by equities ($663m), led by ESG optimised ($219m) and climate-exclusive strategies ($206m). Fixed income saw $76m of net inflows – reversing October’s outflows (-$16m), but still down vs. 2022’s monthly average of $145m.
Source: ETFWorld.co.uk
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