Momentum remains strong in ETP market

ETP inflows set a new January record as investors commited $40.9bn to the sector during the first month of 2013, the BlackRock ETP Landscape Report showed today.

Momentum remains strong in ETP market


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.”