Surge in global ETFs, new record - Global ETF FlowWatch - January 2017 Results
/During January, worldwide ETFs surged with US$64 billion in net flows driven by the robust expansion of the U.S. stock markets. Equity ETFs led with US$45 billion in net new money, followed by bond and commodity (mostly gold products) ETFs garnering US$17 billion and US$2 billion, respectively. ETFs assets set a new record and stood at nearly US$3.66 trillion globally.
In the U.S., equity ETFs attracted $27 billion of net flows, while bond products recorded US$14 billion in net new cash. At the category level, Bond USD attracted the most net flows of nearly US$9 billion, followed by Equity US – Mid/Small Cap and Equity Global – Large Cap garnering US$8 billion and US$6 billion, respectively. Meanwhile, commodity (mostly gold products) experienced small net redemptions of almost US$1 billion.
ETFs in Asia recorded US$9 billion of net flows, mainly driven by Equity Japan amassing $9 billion of inflows in Asia. Equity Japan was also the bestselling ETF category worldwide in January recording nearly $10 billion in net new money. ETFs in Europe garnered US$13 billion of inflows mostly attributed to equity ETFs collecting almost US$8 billion in net new cash.
Source Bloomberg Commodity UCITS ETF A USD was the largest ETF launch in January 2017, accumulating US$873 million in net flows. The ETF tracks the Bloomberg Commodity Index and commodities within the index are weighted two-thirds by liquidity and one-third by global production. The ETF is managed by Source and is currently listed on the London Stock Exchange.