Exchange-traded products globally collected $56.5 billion in net inflows during November, the greatest increase in net new assets since January, according to the latest BlackRock ETP Landscape report.
Fixed income ETPs gathered their highest net inflows in November since June 2017.
Global ETP growth was propelled by robust demand for fixed income products which gathered $18.7bn – the highest month since June 2017 – led by US Treasury funds with $9.1bn.
Of note, short maturity Treasury ETPs attracted $7.5bn, while short maturity funds across all fixed income categories took in $11.3bn.
On the flip side, high-yield bond funds had outflows for the third consecutive month, shedding another $1.0bn.
According to BlackRock, the trends reflect tighter financial conditions including higher interest rates, a stronger dollar, and more volatile stock markets.
Equity ETPs gathered $39.5bn in net inflows during November with $29.2bn going into developed equity funds.
US equity ETP inflows accelerated to $19.0bn – nearly five times last month’s total – boosted by solid US corporate earnings and strong US economic growth. Flows were focused in large cap ETPs with $12.9bn, followed by dividend smart beta funds with $3.9bn, and mid cap ETPs with $2.6bn.
Sector funds flows were marked by rotations into health care and consumer staples, which gathered $1.8bn and $0.7bn respectively. Outflows were recorded in products targeting the technology, financials, and industrials sectors, which lost $2.5bn, $1.8bn, and $1.5bn respectively.
ETPs providing exposure to European equities lost $2.3bn – the ninth consecutive month of outflows for the category – against the backdrop of relatively muted earnings growth, weak economic momentum and political uncertainty. November outflows were focused in UK and EMU exposures as the Brexit draft deal moves toward a vote by UK lawmakers.
Emerging market ETPs enjoyed a second month of robust inflows with $10.3bn split approximately evenly between broad multi-country funds and single-country funds. China equity ETPs led the single-country field with $2.4bn in net inflows as investors acted on the delay to the imposition of new US tariffs for 90 days.
Following November’s bumper inflows, year-to-date net new assets have reached $447.5bn across all ETPs globally.
While the flows signal a healthy, growing industry, they are some way behind last year’s amount of $594.1bn going into December.