April was another decent month for global exchange traded
products inflows, though the $10.3 billion that flowed into
and ETNs last month was off the pace seen in the first quarter.
Still, year-to-date global ETP inflows are up to $79.9 billion,
well ahead of last year's record pace of $66.3, according to
Perhaps in a sign that investors remain apprehensive about
stocks and other risky assets, bond ETFs saw $9.5 billion in
inflows last month, the best month for that category since May
2012, said BlackRock. Some investors may also be showing signs of
concern regarding rising interest rates because short duration
funds attracted $5.6 billion last month. BlackRock's (NYSE:
) iShares unit is the world's largest ETF sponsor.
With gold suffering its worst one-day performance in three
decades last month, outflows from ETFs such as the SPDR Gold
) and the iShares Gold Trust (NYSE:
) totaled $8.7 billion. Year-to-date outflows from gold ETFs are
now $17.9 billion, according to BlackRock.
Outflows from GLD mean that ETF is no longer the
second-largest in the world by assets behind the SPDR S&P 500
). The number two spot now belongs to the Vanguard FTSE Emerging
Markets ETF (NYSE:
). Surprisingly, year-to-date inflows to gold miner funds remain
Equity-based ETFs raked in $9.6 billion last month and
investors are embracing non-market cap weighted funds.
"Non-Market Cap weighted funds have captured 42% of Equity ETP
flows YTD, more than two times their share of Equity assets. Key
drivers in this category are Dividend Income with flows of $3.4bn
in April - a new record monthly high - and $10.9bn YTD as well as
Minimum Volatility with $2.5bn in April and $6.5bn YTD," said
Lead by weakness in diversified ETFs, emerging markets funds
saw outflows of $3.5 billion in April, but Japan remains a star
at the international level as ETFs tracking the world's
third-largest economy hauled in $4.8 billion last month.
A total of 147 new ETPs have come to market this year, but of
the 15 top asset gathers, just a third are listed in the U.S. The
SPDR Blackstone / GSO Senior Loan ETF (NYSE:
), which debuted on April 3, attracted $155 million last month.
Two iShares ETFs, the iShares MSCI USA Size Factor ETF (
) and the iShares MSCI USA Momentum Factor ETF (NYSE:
), have topped $100 million in AUM in barely more than two weeks
In terms of year-to-date inflows, the leaders continue to be
the WisdomTree Japan Hedged Equity Fund (NYSE:
) at $5.4 billion and the rival iShares MSCI Japan Index Fund
) at $4.1 billion. The top bond ETF for year-to-date inflows is
the Vanguard Short-Term Bond ETF (NYSE:
) at almost $2.7 billion.
Not surprisingly, some of the largest ETFs have also seen some
of the largest outflows. That list includes (in order), GLD, SPY,
the iShares MSCI Emerging Markets Index Fund (NYSE:
), the iShares iBoxx $ Investment Grade Corporate Bond Fund
) and the iShares Barclays TIPS Bond Fund (NYSE:
At the country level, the iShares MSCI Brazil Capped Index
), the iShares FTSE China 25 Index Fund (NYSE:
) and the iShares MSCI Germany Index Fund (NYSE:
) have lost roughly $4.5 billion in assets combined.
For more on ETFs, click
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