Europe-listed ETPs attract 45% of global flows in October, BlackRock

Flows to exchange traded products (ETPs) have reached $192.3bn year to date, surpassing 2011’s full year total of $173.4bn, according to data released by the BlackRock Investment Institute.

ETPs listed in Europe generated $4.2bn in flows, which represents 45% of total global flows in October, the highest ratio this year. ETP flows in October were $9.5bn, BlackRock reported.

During the month, flows were broadly distributed across exposures, including gold, and remained robust and diversified by asset class, making October the third consecutive month of flows greater than $4bn.

Emerging markets Bond ETPs attracted $1.9bn in October, the highest monthly total on record.

Meanwhile, emerging markets Equity ETPs drew $6.7bn in flows, outpacing flows in 2011 by a wide margin.

Appetite for yield also drove flows into investment grade corporate ETPs, led by the fixed income category which attracted $3.3bn in October

Gold ETPs attracted $2.5bn in October, following robust flows the last two months.

“Investors maintained a degree of risk appetite in October, embracing emerging markets equities and bonds and investment grade corporates, yet hedged risks by putting money into gold,” said Dodd Kittsley, global head of ETP research for BlackRock

Kittsley added: “Flows into European-listed ETPs as well as flows of $1.3bn into Pan-European exposures, regardless of where listed, suggest that fears of a near-term Eurozone break-up have subsided following ECB commitments to backstop sovereign bond markets.”

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