BlackRock ETP Landscape: May Flows Favor Fixed Income & Gold

In the BlackRock ETP Landscape series of reports, the Industry Highlights provides commentary on the global Exchange Traded Product (ETP) industry as of May 2016.

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Industry Highlights

MAY GLOBAL ETP FLOWS REFLECT INVESTOR PREFERENCE FOR FIXED INCOME AND GOLD OVER EQUITIES 

• May flows of $10.7bn were paced by $9.7bn for bond funds and boosted by a renewed appetite for gold, which accumulated $4.1bn   
• Minimum volatility funds, which have steadily attracted $3bn per month this year amid equity market uncertainty, brought in another $2.6bn    
• Fixed income flows remained broad based, from corporate bonds to EM debt to municipals  
  1. The leading categories were investment grade corporate bonds with $2.8bn, primarily from ongoing demand in Europe, and broad US debt with $1.8bn 
  2. The only redemptions were ($2.6bn) for high yield corporate bonds, which have still gathered $4.7bn year-to-date as investors hunt for sources of income    
• EM equity generated outflows of ($5.0bn) after two strong months, as renewed concern over China’s economic growth impacted both broad EM funds and country funds with Asia exposure 

 Sources: Markit