The investment firm said November saw a ‘surge’ in equity ETP flows which look set to propel the total to its highest ever annual level.
Global ETPs attracted $40.1bn during the month to bring the year-to-date total to $267.9bn, with investors returning to equities after October’s minor market correction boosted fixed income.
US equities brought in $36.1bn concentrated in large cap funds, spurred on by an improved U.S. economic outlook and accommodative central bank activity in other regions.
Japanese equity ETPs listed in the U.S. and Europe saw $4.1bn flow in following the announcement of the expansion of the Abe stimulus.
European fixed income inflows reach $2bn, predominantly in investment grade corporate debt. This was largely driven by the start of ECB bond purchases and its commitment to further action should inflation not materialise.
US and European-listed ETP flows benefited from China’s rate cut although the outflow streak for China-listed funds continued for a third month.
“The global ETP industry recorded $40.1bn of inflows in November, the strongest month this year,” said Ursula Marchioni, Head of ETP research EMEA at iShares. This brings year-to-date flows to almost $270bn making 2014 the best year ever in the ETP industry’s history, surpassing the previous record of $262.7bn recorded in 2012. US equity exposures accounted for almost all inflows this month, but US and European listed Japanese equity ETPs also gathered strong flows of over $4.0bn following expansive monetary stimulus and GPIF asset allocation announcements.”
“The European ETP industry has seen YTD inflows topping $60bn, making Europe the region with the highest organic growth rate for the year globally. Despite weakness in the European economy, investors have increasingly been utilising ETPs as their investment vehicle of choice,” she added.