You are here: Home - Investing -

Investors pump record sums into ETPs

Written by:
The commodities market is being hit hard as investors pump record sums into exchange traded products, in a bid to avoid the increasing volatility caused by fears over the global economy.
Investors pump record sums into ETPs

Inflows into ETPs, which mainly offer exposure to baskets of equities, bonds or commodities, attracted net assets of more than $100bn in the first half of this year – making it the highest amount since the industry emerged in the late 1980s, according to BlackRock’s ETP Landscape team. The global ETP industry now stands at $1.68tn.

There is a strong demand for exposure to income-producing assets, with fixed-income ETPs being the main contributor to inflows rising to $1.5bn, a 16% increase from the same period last year.

Gold ETPs particularly benefitted from increased inflows as investors expect central banks to take further steps to boost growth by loosening monetary policy today. Gold ETPs gathered $2.2bn in new assets.

Dodd Kittsley, global head of ETP research for BlackRock, commented: “The ETP industry continues to gather new assets from investors around the world, who are attracted by the efficient market access ETPs can offer.”

“Demand for exposure to fixed income assets has been a key theme for the last year and shows no sign of abating, as acceptance of the value of an indexed approach to fixed income investing gains increasing traction amongst investors. During times of economic uncertainty and increased market volatility, the efficiencies, precision and flexibility that ETPs may offer tends to resonate with investors.”

June was the eighteenth consecutive month in which global fixed income ETPs have attracted net inflows. Other income-focused ETPs, including those providing exposure to high dividend equities, real estate and preferred stocks drew in $17.9bn on a year to date basis.

Developed market equity ETPs also saw inflows during the same month, mostly from U.S. investors, posting net new assets of $12.7bn. On a year to date basis, developed market equity ETPs have gathered inflows of $40.5bn whilst developed market equity mutual funds have seen outflows of $66bn according to EPFR.

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Eurozone recession likely to continue, but milder than expected

The euro area economy is unlikely to improve soon but the recession should be milder than the 2008 slump, according...