Investor appetite for risk was also evident, with equities accounting for 94% of inflows. The data indicates that momentum in the market is continuing, following last year’s record-breaking $262.7bn of inflows.
Emerging markets attracted significant inflows, with EM Equity ETPs garnering $13.2bn and EM Bond ETPs gathering $0.4bn. EM Single Country exposure ETFs saw strong inflows of $5.8bn, and vehicles offering exposure to China, South Korea and Mexico proved to be particularly popular.
Investors moved out of the treasuries space, consequently moderating fixed income inflows at $2.1bn for the month, while High Yield ETPs attracted $0.8bn making them one of the best asset-gathering products in the month.
Dodd Kittsley, global head of ETP research at BlackRock commented: “After crossing the milestone figure of $2 trillion in total assets, the global ETP industry shows no signs of slowing down. The $40.2bn in total net inflows this month was the strongest on record for the industry in January, surpassing the previous record last year of $33.5bn.
“Investors have been encouraged by continued low interest rates, moderated concerns about Europe, an improved economic outlook in China, and acceptable earnings results from US corporations.”