Fixed Income ETF Flows
With $10.7bn NNA, July was the strongest month on record for net inflows into EMEA-domiciled ETFs and takes the year-to-date total to $38.9bn. While the perceived ‘safe-haven’ asset classes of cash management and government bonds remained in favour with investors, demand was strong across the board with inflows seen in both investment grade and high yield credit ETFs, along with emerging market government debt.
Cash management ($1.8bn) was the strongest category for net inflows in July for the second consecutive month, closely followed by US Treasuries ($1.8bn), most of which went into ETFs focused on sub-1-year maturities. EUR and USD investment grade credit ETFs took in $1.7bn and $1.1bn respectively, with EUR Govts ($0.6bn) completing the top five. Categories experiencing outflows were limited with only ETFs focused on Development Bank bonds (-$0.3bn) seeing material selling.