Global ETP sector again records high net inflows in October; Strong month for ETFs on European Equity indices in particular; Inflows for Bond ETFs grew significantly in October; ETFs on the Japanese equity market as well as emerging markets recorded slight inflows; Gold and Crude Oil ETPs popular in October.
Europe Monthly ETF Market Review; Deutsche Bank Markets Research Global ETP sector again records high net inflows in October
Data as at: 30.10.2015
Global ETP Market In and Outflows:
• The global ETP sector continued to grow during October. After net inflows totaling US dollar 34.2 billion in September, the October figure was US dollar 34.1 billion. The industry now manages US Dollar 2.9 trillion (p. 1, 22). • The American ETP market in particular was a key driver of global growth. Following net inflows of virtually US dollar 20 billion in September, inflows in October increased to US dollar 28 billion. Once again ETFs on Equity indices made the largest contribution delivering inflows of US dollar 15.8 billion. However, Bond ETFs also made a positive contribution with over US dollar 11 billion. After Commodities ETPs suffered outflows of 0.4 billion in September, the October figure saw inflows of US dollar 0.5 billion. Since the beginning of the year, US ETP inflows total in excess of US dollar 172 billion (p. 3, 22). • The European ETP market also generated significant inflows. In October it grew by US dollar 7.1 billion following 2 billion US dollar growth the previous month. Indeed, Commodities ETPs successfully turned the corner with growth of US dollar 0.4 billion. • Conversely, the Asian market recorded net outflows of US dollar 1 billion, after achieving net inflows during September in excess of US dollar 12.2. Both Bond ETPs and Equity ETPs suffered a decline in the Asian market (p. 22).
European ETF Market In and Outflows Equities:
• Net inflows recorded by the European ETF market during October increased substantially in comparison to September. During the past month, new money of Euro 6.1 billion was invested in ETFs, compared to the previous month’s figure of Euro 1.9 billion. The European ETF industry currently manages a total of Euro 447 billion (p. 12, 22). • In October European Equity ETFs generated net inflows of Euro 2.5 billion which equates to 40 per cent of all European ETF inflows. The previous month’s net inflows figure for Equity ETFs was substantially lower at Euro 1.6 billion. Continuing the trend, in October most money was directed to developed markets. ETFs from industrialized countries recorded growth of Euro 1.3 billion, while Emerging Markets ETFs achieved Euro 0.8 billion. This signals a turnaround as Emerging Markets had still been suffering outflows during September (p. 22). • ETFs on the Japanese equity market once again recorded net inflows in excess of Euro 0.7 billion during October, in comparison to the previous month when Japan ETFs suffered outflows of Euro 0.1 billion (p. 22). • For ETFs on individual emerging markets, China ETFs recorded slight inflows, while ETFs on the Taiwanese and Russian markets registered slight outflows (p. 26). • At a sector level, Energy was again one of the sectors attracting the highest growth with a plus of Euro 0.12 billion. In addition Consumer Goods ETFs recorded net inflows of Euro 0.1 billion. Strategy ETFs suffered significant outflows of Euro 0.4 billion which included short and leveraged products (p. 23).
Bonds
• October was also a month of significant inflows for Bond ETFs. This segment continued the positive trend from recent months by adding Euro 3.5 billion. As such, Bond ETFs contributed more than one half of the positive cash flow in the European ETF market during October (p. 1, 22). • ETFs on Investment Grade Bonds attracted the highest inflows with an increase of Euro 2.9 billion. Consequently, total net inflows since the beginning of this year stand at Euro 20 billion. High Income Bonds also recorded positive inflows in October of Euro 0.7 billion bucking the net outflow trend over previous months (p. 1).
Commodities
• In October, European Commodities ETPs again recorded net inflows of almost Euro 0.4 billion, after outflows in September of Euro 0.26 billion. The winners mainly included ETPs on Crude Oil (Euro +0.19 billion) as well as Gold (Euro +0.14 billion) (p. 26).
Most Popular Indices
• The most popular equity indices in October remained the Euro STOXX 50, the MSCI Emerging Markets Index, the STOXX 600 as well as the DAX. TheS&P 500 and the MSCI Europe were also in demand (p. 27). • For Bonds, investors focused particularly on ETFs on Sovereign Bonds issued by Emerging Markets as well as Euro High-Income Bonds (p. 27).
Hashdex Nasdaq Crypto Index ETP, den största kryptoindexprodukten i Europa med över 500 miljoner USD i AUM, har nominerats till ETF Stream Awards 2024, i kategorin ”Digital Assets ETP Of The Year”!
Hashdex är glada över att se sitt engagemang för att tillhandahålla innovativ, reglerad tillgång till kryptotillgångsklassen erkänd. Detta erkännande belyser deras ledarskap när det gäller att utveckla kryptoinvesteringslösningar.
Hashdex Nasdaq Crypto Index ETP, den största kryptoindexprodukten i Europa med över 500 miljoner USD i AUM, har nominerats till ETF Stream Awards 2024, i kategorin ”Digital Assets ETP Of The Year”!
Detta erkännande belyser Hashdex engagemang för att tillhandahålla innovativa, robusta produkter som förenklar tillgången till kryptotillgångarnas värld. HDX1 erbjuder diversifierad exponering och tydlighet på en komplex marknad, vilket förkroppsligar Hashdex uppdrag att föra kryptons framtid in i nutiden av investeringar.
Prisutdelningen äger rum den 28 november i London, där Hashdex kommer att ansluta sig till branschens främsta ETF-spelare.
For years, India has been ramping up to contend with China as the region’s top technology leader. Pandemic-era supply chain issues hastened its successes in luring foreign tech firms. Now, equity investment flows are following suit. Dina Ting, Head of Global Index Portfolio Management at Franklin Templeton, highlights a few factors behind how the subcontinent is benefiting from rotational flows.
As China braces for renewed friction over President-elect Donald Trump’s tariff threats, investor flows may be following similar currents as those of regional supply chain shifts—that is to say, diversifying from China and toward opportunities in markets such as India and Japan.
After the People’s Bank of China revealed the most aggressive stimulus package it’s rolled out since the COVID-19 pandemic, China stock markets saw a short-lived rally at the end of September. A lack of detailed measures targeting consumption seems to have disappointed investors and led the bullish sentiment to deflate.
Adding to the country’s economic woes are societal changes like falling birthrates and a rapidly ageing population. Estimates by China’s National Health Commission suggest the country’s elderly population will grow to over 400 million by about 2035. To better cope with this crisis, China’s statutory retirement age will be extended, starting in January 2025, for the first time since the 1950s.
India investors, meanwhile, are finding the subcontinent—which has already overtaken China as the world’s most populous nation—appealing for its relative immunity to global risks, given its domestic-driven economy. Its younger labor force has also attracted a market pivot to this prime alternative to China manufacturing. For the 12-month period prior to China’s September 2024 stimulus announcement, US-listed India equity exchange traded funds (ETFs) garnered US$7.5 billion in flows—a sharp contrast to the US$6 billion in outflows experienced by China ETFs over the same period.1
Judging by India’s impressive initial public offering (IPO) environment, businesses there are feeling the optimism. The country’s 258 IPOs accounted for 30% of the global total by number by the end of September and 12% by the amount of money raised, in an economy that makes up just over 3% of global GDP.2
And investors in India are taking note. Aided by the improving digitalization of finance and increased internet access, India’s middle class is also an expanding retail investor class. By one measure, nationwide stock trading accounts nearly tripled from 2019 to 2023 to roughly 140 million.3
In dollar terms, total returns for Indian stocks have risen by 93% over the past five years, compared with about a 24% rise overall for emerging markets and drop of 5% for China stocks over the same period.
Many investors seeking to better diversify emerging market exposure or layer in targeted broad country allocation can tap single-country exchange-traded strategies.
Emerging markets in the Asia region are not the only beneficiaries of a potential US-China trade war. Earlier this year, investors were already driving up flows into Japan ETFs. Market watchers consider Japanese stocks to be indirect beneficiaries of Trump’s reflationary economic policy—which may keep interest rates high, thereby boosting the dollar and weakening the yen to the advantage of Japanese exporters.
The MSCI Japan Index is up nearly 21% in US dollar terms in the one-year period ending October 31, 2024. Consumer discretionary, financials and industrials holdings led gains during this time.
An element of uncertainty around the policies of a second Trump term, however, are still causing jitters around Asia, especially given the president-elect’s transactional approach to international relations.
Fortunately, Japan is seeing a renaissance in its semiconductor industry for which Tokyo is investing heavily (more than US$25 billion through 2025) and has established strong multilateral trade partnerships.
Japan has already elevated its role in global supply chain reorganization in recent years, and seeks to take advantage of its clout in joint free trade initiatives, such as the US’s Indo-Pacific Economic Framework for Prosperity to strengthen its regional supply-chain leadership.
iShares iBonds Dec 2030 Term EUR Corporate UCITSETF EUR (Dist) (30IG ETF) med ISIN IE000LX17BP9, strävar efter att spåra Bloomberg MSCI December 2030 Maturity EUR Corporate ESG Screened index. Bloomberg MSCI December 2030 Maturity EUR Corporate ESG Screened-index följer företagsobligationer i EUR. Indexet speglar inte ett konstant löptidsintervall (som är fallet med de flesta andra obligationsindex). Istället ingår endast obligationer som förfaller under det angivna året (här: 2030) i indexet. Indexet består av ESG (environmental, social and governance) screenade företagsobligationer. Betyg: Investment Grade. Löptid: december 2030 (Denna ETF kommer att stängas efteråt).
Den börshandlade fondens TER (total cost ratio) uppgår till 0,12 % p.a. iShares iBonds Dec 2030 Term EUR Corporate UCITSETF EUR (Dist) är den enda ETF som följer Bloomberg MSCI December 2030 Maturity EUR Corporate ESG Screened index. ETFen replikerar det underliggande indexets prestanda genom samplingsteknik (köper ett urval av de mest relevanta indexbeståndsdelarna). Ränteintäkterna (kupongerna) i ETFen delas ut till investerarna (kvartalsvis).
Denna ETF lanserades den 9 maj 2024 och har sin hemvist i Irland.
Varför 30IG?
Exponering mot företagsobligationer i euro denominerade i investeringsklass, skattepliktiga, fast ränta och som förfaller mellan 01/01/30 och 02/12/30
Det är en investeringsperiod i fonden att andelsägare den 02/12/30 kommer att få sina andelar inlösta utan ytterligare meddelande eller aktieägargodkännande den 30/03/12
Indexet tillämpar skärmar som exkluderar emittenter som är involverade i följande affärsområden/aktiviteter: tobak, kärnvapen, civila skjutvapen, kontroversiella vapen, termisk kolbrytning, generering av termisk kolkraft, oljesand, konventionella vapen och vapensystem/komponenter/ stödsystem/tjänster.
Investeringsmål
Fonden strävar efter att uppnå avkastning på din investering, genom en kombination av kapitaltillväxt och inkomst på fondens tillgångar, vilket återspeglar avkastningen från Bloomberg MSCI December 2030 Maturity EUR Corporate ESG Screened Index, fondens jämförelseindex.
Det betyder att det går att handla andelar i denna ETF genom de flesta svenska banker och Internetmäklare, till exempel DEGIRO, Nordnet, Aktieinvest och Avanza.