Demand for et fs surge amid market volatility

iShares ETF products on platforms attracted a combined £1.04bn in Q2 2013, as advisers poured assets into minimum volatility funds and longer dated corporate bond funds.

Demand for et fs surge amid market volatility

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The number of advisers using iShares ETFs on wrap platforms also increased during the quarter, with those on the Ascentric platform showing a 72% increase in demand year-on-year, and a 45% rise since the start of 2013.

In terms of markets, products focused on developed market equities have been popular since the start of the year, and demand for these vehicles has outstripped that of emerging market equities.

Minimum volatility funds also proved popular among investors looking to take their first steps back into the equity markets but seeking to minimise exposure to market volatility.

Short dated corporate bonds attracted significant inflows in the first quarter of the year, a trend which was reversed in the second quarter as £100m flowed into their long dated equivalents. The reverse was true in gilts, where Q1 saw higher demand for long dated gilts and Q2 for short dated.

Earlier in the summer the group launched its first currency-hedged bond ETFs – find out more here

 

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