A ‘remarkable’ April for ETP flows
Global exchange traded product (ETP) flows hit $35.4 billion in April, doubling from $17.7 billion in March, according to BlackRock’s latest ETP landscape report. Global fixed income flows hit $17.3 billion in April, which represents a ten-month high. US equities added $6.9 billion, versus a redemption of $7.1 billion in March, thanks to a strong earnings season. Gold flows reached $2.9 billion, the highest level since July 2016.
Where were the outflows?
In terms of other notable flows, BlackRock highlights that European equities saw redemptions of $5.7 billion in April. European equity funds saw two consecutive months of outflows for the first time since late 2016. Japanese equity flows slowed from $13.6 billion in March, to just $0.4 billion in April.
Commodities leading the charge
April net inflows into EMEA-listed ETPs hit $1.4 billion, according to BlackRock’s latest ETP EMEA flows update. Commodities led the way, with monthly inflows hitting $1.7 billion. The majority of flows went into gold, where $1 billion of assets were gathered. BlackRock remarked that, ‘ongoing trade tensions and mixed equity market sentiment led to a spike in gold inflows, which reached the highest level since August 2016. Geopolitical events also drove a flight to safe haven assets in 2016’. Broad commodity ETPs gathered $686 million in April, thanks to ‘the uptick in the commodity price and continuously strong global growth’.