Inflows into EMEA ETFs have remained relatively stable over the last three months following a very strong January, Invesco’s monthly ETF European Demand Monitor report revealed.
Within asset classes, fixed income enjoyed $7.2bn of inflows, led by US Treasuries and EUR investment grade credit, which received $2.3bn and $2.2bn respectively.
Meanwhile, equities saw $4.5bn in inflows, mainly from the $3.1bn that flowed to global equity funds, which was slightly dampened by outflows in US equity and value funds, at $600m and $500m respectively.
All asset classes saw modest performance gains throughout the month, with equities rising 1.5%, fixed income rising 1.3% and commodities up 0.4%. Flows into commodities were flat throughout the month.
Looking ahead, Invesco said the rest of 2023 would provide “a more supportive backdrop” for ETF flows as the improving economic outlook and peaking rates dissipate some lingering uncertainty.
It noted that further investment in Chinese equities was expected as the country re-emerges from its zero-Covid policy, while ESG flows will continue to remain strong, especially into thematic ETFs.
Meanwhile, gold may retain its ‘safe haven’ attributes, as the commodity has stabilised at the $2,000 level, just below its all-time high.
