ETF net flows stable at US$9bn - Global ETF FlowWatch - May 2016

ETF net flows worldwide remained US$9 billion during May 2016, matching the prior month’s net deposits. Bond products garnered over US$8 billion in net new money, and commodity (mostly gold products) as well as other ETFs collectively added almost $6 billion, while equity products experienced net withdrawals of US$5 billion for the month. ETF assets edged closer to US$3.1 trillion globally. 

In the U.S., equity products suffered US$7 billion in net redemptions amid market volatility. On the other hand, bond products gathered US$4 billion of inflows. In addition, gold and commodity products attracted nearly US$5 billion in net flows.

European ETF saw a moderate US$2 billion in net flow gains, mainly driven by bond products. Asia gathered US$3 billion of net inflows in May after $6 billion in net outflows in the previous month. In contrast to other regions, equity products absorbed nearly US$3 billion in net new money, mostly from Equity Japan and Alt – Leveraged/Inverse ETFs.

Mercer Investment Fund 6 M-1 EUR Hedged was the biggest ETF new launch in May, collecting US$347 million in net flows. The fund was launched near the end of May and is domiciled in Ireland. This ETF invests in bonds worldwide and is hedged to the Euro.