emd exchange-traded products

Passive emerging market debt funds are attracting as much interest as active funds in the asset class, according to new figures from BlackRock, as the sector saw its highest monthly ETP inflows on record last month.

emd exchange-traded products


In October EM bond ETPs absorbed $1.9bn of inflows, the highest ever recorded for the asset class.

Meanwhile, investors were also attracted to other ‘risker’ asset classes during the month, with broad EM equity ETPs witnessing $2bn of inflows.

Altogether, strategies in the two asset classes (including single country EM ETPs) drew in $8.5bn BlackRock added.

On the other end of the risk spectrum gold ETPs attracted $2.5bn, building on “robust flows in August and September”. This took total inflows into Gold ETPs to $10bn in the past three months.

The popularity of ETPs in Europe has increased as the year continues, BlackRock pointed out, with $4.2bn of sales in the region accounting for 45% of total global flows during October.

Year-to-date flows to the end of October also show the strongest since 2008, with flows of $192.3bn surpassing 2011’s full year total of $173.4bn already.