U.S. listed ETFs and ETPs, which traditionally account for the majority of assets, saw inflows of just US$2.7 billion or 20% of global assets October. Globally, ETFs and ETPs providing exposure to North America equities suffered net outflows of $10.1 billion. Investors and investments suffered from growing uncertainty in October over the likely outcome of the US presidential election, the impact of the fiscal cliff in the US, the likely impact of superstorm Sandy and the on-going debt concerns in the Eurozone, according to Deborah Fuhr, Managing Partner at ETFGI.
The majority of concerns and uncertainties focused on the US, and investments in the US, did not negatively impact flows in all regions around the world. Flows into ETFs and ETPs listed in Europe accounted for $4.6 billion or 34% of total assets, and in Asia Pacific (ex Japan), which amassed $4.5 billion or 33.7% of the total. Products listed in Japan, Canada, Middle East and Africa and Latin America accounted for $1.7 billion.
“The source and composition of the fund flows in October shows that ETFs and ETPs are a product set that are increasingly being embraced by investors around the world and are a very good indicator of how investors are tactically and strategically adjusting their allocations to political, economic and other uncertainties that are impacting the markets,” stated Fuhr.