BlackRock cited global ETP inflows in February of $27.2bn spurred on by Janet Yellenâ€™s February 11th address to Congress, which was well received by equity markets.
â€œPositive comments from the Fed indicating that the US economy continues to brighten, the S&P500 ending February with a record close of 1859 and signs of a wider global recovery in equities seems to have caused investors to come out of their winter hibernation after the winter storms and put net inflows of $29bn into ETFs/ETPs in February,â€ according to Deborah Fuhr, managing partner at ETFGI.
When comparing overall net inflows, fixed income ETFs/ETPs gathered $16.8bn followed by equity ETFs/ETPs with $10.2bn and commodity ETFs/ETPs saw net inflows of $870m, according to ETFGI. BlackRock states fixed income flows of $19.6bnm which was a new monthly record and due to expectations for continued low interest rates and low inflation. Despite inflows into all duration buckets, short maturity funds had a record month taking in $7.4bn, while US Treasuries brought in $11.4bn, investment grade corporate gathered $3.6bn and high-yield corporate added $1.4bn.
Overall equity flows were moderate at $5.8bn with investors continuing to favour non-US developed markets exposures. Japanese equity inflows reached $4.1bn and pan-European funds gathered $2.8bn as evidence continues to point toward improving growth in the region. US equity outflows totalled ($0.2bn) and emerging markets shed ($4.5bn).