fixed income etps break records

Fixed income exchange-traded products followed the same trend as their mutual fund counterparts in May, with record inflows of $11bn during the month.

fixed income etps break records


This represented a significant jump from the previous record month in January 2012, which saw inflows of $9.1bn, according to BlackRock’s ETP Landscape Report for May.

Within the asset class, government bond ETPs also attracted record breaking inflows, of $5.6bn, driven by flows of $4.4bn into US Treasury bond products. This was $2bn higher than the previous record set in June 2010.

Meanwhile, Chinese and German products led flows into equity ETPs, with flows of $8.3bn into two new Chinese equity funds outweighing outflows of $5bn from a broad range of other emerging markets products.

The two new Chinese equity funds seek to replicate the performance of the China Securities Index 300 which tracks 300 stocks traded on the Shanghai and Shenzhen stock exchanges. These are the first cross-market ETFs to be listed in China.

Dax German equity funds also swung back into favour, with strong flows of $4.3bn in May, compared to outflows of $5.1bn in April.

Another developed equity market to absorb significant inflows last month was Japan, with its equity ETPs gaining $3.6bn in new money.


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