BlackRock reveals investors snapped up equities in January

Investors have been trading equities en masse, according to the latest data from BlackRock, with 94% of a record $262.7bn of flows accounted for by the asset class last month.

The group’s latest survey of the exchange traded product universe was characterised by risk on flows, as investors switched into equity markets around the globe.

Investors have been flocking to emerging markets equities, which took in net inflows of $13.2bn in January, the highest monthly total in more than three years.

Single Country ETPs also saw strong inflows of $5.8bn, with investors preferring China, South Korea and Mexico.

US equity ETPs took in $5.4bn, with technology, financials, real estate, consumer cyclicals and industrials pushing flows to a three-year high.

Meanwhile fixed income flows cooled after the VIX reached a five-year low of 12.43 last month, indicating less volatility in the price movements of equities in the S&P 500.

Fixed income attracted $2.1bn in net inflows for the month, compared to the monthly record total of $6.9bn that was set in January 2012.

Gold also surrendered $1.2bn last month, as investors made the switch into equities, breaking a five-month run of inflows into the metal.


This article was first published on Investment Week

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