The asset manager’s monthly ETP Landscape report revealed that Treasury bond products attracted $2.7bn in flows last month, with more than $1.6bn of that coming in a three-day period ahead of the US presidential election.
However, investors pulled away from high-yield fixed-income ETPs. Inflows still occurred in products invested in high-yielding assets with less perceived risk such as bank Loans, short-duration high-yield and emerging market bonds.
“Flows quickly shifted just ahead of the election as it became apparent that neither party would emerge with enough strength to immediately avert the fiscal cliff, bringing the possibility of higher taxes and spending cuts to the forefront,” the report said.
Investors showed a degree of risk appetite despite the concern created by the fiscal cliff.
US equity ETPs took $8.2bn during November, emerging market equities attracted $5.1bn and broad emerging market products garnered $1.9bn. Gold ETPs took in $1.8bn on the expectation of continued expansionary monetary policy by the world’s central banks.
Across all asset classes, ETPs witnessed inflows of $25bn last month – taking the year-to-date total to a record $218.9bn.
Dodd Kittsley, global head of ETP research at BlackRock, said: “November’s strong flows demonstrate that investors are attracted to the flexibility ETPs provide to navigate today’s markets.
“Against a backdrop of the US elections and the looming fiscal cliff, investors looked to ETPs for safe-haven exposure in Treasuries, while also moving into US equities, emerging market equities and emerging market bonds for higher income exposures.”
