The global exchange-traded products (ETP) industry posted its best first quarter on record, amassing flows of $70.1 billion compared to the previous record of $65.5 billion set in 2012, according to Blackrock’s March monthly snapshot.
“Investors registered renewed confidence in developed equity markets with record ETP flows in the first quarter. Despite continued market volatility, investors recognize that the fundamentals in the United States are generally favourable, given strong corporate earnings and cheap equity valuations,” says Russ Koesterich, BlackRock global chief investment strategist. “Rather than the much-discussed “great rotation” from bonds into equities, the first quarter showed investors moving cash from the sidelines into equities, and preparing for a rise in interest rates by rotating within fixed income into short-term and floating-rate ETFs.”
Global highlights
- Equities accounted 93% ($65.1 billion) of flows, with developed markets accounting for $60.5 billion in flows.
- Flows into U.S. equities accounted for $37.3 billion, up 80% compared to the first quarter of 2012.
- Fixed Income inflows remained strong with $11.6 billion.
Read more on exchange traded products in our ETF Resource Centre.