Everyone’s buying Europe, says BlackRock

ETFs are on pace for inflows of $500 billion this year having taken $170 billion so far in 2017, the highest inflows ever for the first four months of a year. European funds have become a key focus for ETP investors globally this year after an extended period on the sidelines. 

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As views diverge on the future direction of the US, Europeans are selling US-related exchange traded funds (ETFs) and US investors are allocating money to European equity ETFs. They’re doing this at scale. There are, however, large inflows into the US from elsewhere.

Meanwhile, the age of the ‘Empires’ continues, with emerging market equity flows seeing a strong run.

BlackRock’s Rob Powell says the equity dominance continues when it comes to ETFs and for seven straight months equity flows have been ahead of fixed income. But those who are seeking yield, keep emerging market debt at the top of the flow leader board.

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BlackRock’s share of the European bond ETF market has increased in recent years to 67% with investors pouring $9 billion into bond ETFs in Europe, the Middle East and Africa since the start of the year.

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