Data in this report is as of 31 January 2014. Europe Monthly ETF Market Review – Developed Market ETFs attract Inflows of €2.5bn in January
Global Summary
Global equity markets remained bearish in January due to concerns over emerging markets economies. This impacted the Global ETP assets which reduced by $68.6bn (-3% YTD) and closed the month at $2.2 trillion. European ETP assets reached to $409bn (€304bn) at the end of January.
Overall cash flows for the global ETP industry were negative recording outflows of -$6.9bn in January. US domiciled ETPs experienced the largest outflows (-$15.2bn), while ETPs in Europe and Asia-Pac regions recorded inflows of +$4.9bn (+€3.6bn) and +$3.4bn respectively. Fixed income ETFs witnessed positive flows across all the regions with total new creations of +$3.2bn.
European cash flow summary
Europe: Equity ETFs collected healthy inflows, fixed income ETFs followed suit
Amid bearish equity markets, Europe domiciled ETPs started the year with strong cash flows recording +€3.6bn of inflows in January. Equity and fixed income ETFs recorded inflows of +€2.6bn and +€1.5bn respectively, while commodity ETPs experienced outflows of -€0.5bn.
Within equity, developed markets ETFs had the lion’s share collecting +€2.5bn in new money. Conversely, emerging markets ETFs continue to lose ground and experienced -€0.4bn of outflows. Among other segments, sector and capitalization based ETFs brought inflows of +€0.2bn each over the last month.
Fixed income ETFs witnessed inflows of +€1.5bn in January. ETFs benchmarked to corporate and sovereign bond indices were the largest cash flows receivers of the month recording +€0.8bn and +€0.7bn of cash inflows respectively.
After losing close to -€10bn in redemptions in 2013, commodity ETPs continue to see outflows this year as well and recorded -€0.5bn of cash flows in January. Despite some recovery in gold prices during January (+3%), gold ETPs lost -€0.4bn in monthly outflows.