According to the latest edition of BlackRock’s Global ETP Landscape publication, $37.5bn (£23.4bn) flowed into ETPs globally through the month, $19.5bn (£12.2bn) of that into fixed income. That number is made more interesting by the net outflows from fixed income ETPs seen in the previous month.
There flows follow the pattern seen throughout the year of strong growth in fixed income flows after stock market sell offs in the previous month.
This time around, the stock market correction was driven by anxiety over global growth and low inflation and saw particular attention paid to safe haven fixed income categories, BlackRock wrote.
“US Treasury funds led with $9.5bn, (£5.9bn) broad/aggregate U.S. exposures brought in $4.0bn and investment grade corporate added $2.8bn (£1.6bn), ” it added.
While traditional safe havens saw the bulk of the inflows, BlackRock also highlighted the return to strength seen in the high yield market, which gathered $2.3bn (£1.4bn) in assets during the month, in sharp contrast to the pullback seen in July.
“Concerns the Fed would accelerate the timetable for raising rates had ended a prolonged stretch of high yield buying, but the FOMC has maintained its commitment to keeping rates low and attractive fundamentals have brought investors back,” it added.
But, it pointed out, high yield has also been a beneficiary of the seemingly insatiable demand from investors for income.
It said: “Income oriented funds brought in $7.5bn (£4.7bn) and have reached a cumulative $38.3bn (£23.9) year-to-date. Flows are concentrated in dividend income equity, high yield corporate and real estate, but appetite for yield has encompassed other categories.”
On the equity side of the equation, ETPs gathered $17bn (£10.6bn) in assets globally over the month.
This, BlackRock said was driven by U.S. large cap and broad market funds.
According to the group, this came in light of the view that the US currently remains the healthiest economy.
The surprise announcement by the Bank of Japan that it had stepped up its stimulus also provided a fillip.
According to BlackRock:, Japanese ETPs gathered $600m (£375m) in total over the month, but took in $3.2bn during the final weeks following outflows earlier in the month.
European exposures experienced a fourth consecutive month of outflows with $1.9bn (£1.2bn), it said, while emerging markets saw redemptions of $3bn (£1.9bn).
