Record-high global ETP flows in June 2023 reached $98.3 billion, the highest of the year, according to data from BlackRock.
BlackRock’s ‘Global ETP Flows June 2023’ report claimed H1 ETP flows totalled $375.9 billion, surpassing last year’s $301.4 billion.
Equity flows ($209.5 billion) outpaced fixed income ($165.4 billion), with EMEA-listed fixed income ETPs attracting record inflows.
In June, equity flows reached $75.8 billion, while fixed income buying moderated to $26.5 billion, and commodities saw outflows of -$5.1 billion.
June ETP flows indicated a shift away from European equities toward US equities, according to the report. US equity inflows reached $45.2 billion, the highest since October 2022, while European equity outflows hit -$4.6 billion, the highest since August 2022.
International investors played a significant role in the European equity sell-off, noted the report, with outflows from US-listed European equity ETPs accounting for 48% of the total.
Gold experienced its largest monthly outflow since September 2022 (-$3.8 billion), while broad market commodity exposures had a net sell (-$0.8 billion).
June marked positive flows into emerging market debt (EMD) across EMEA, APAC and the US, with global net inflows of $2.6 billion, the second-highest this year.
The report also revealed that Q2 saw strong tech sector flows ($11.3 billion) and a rebound in healthcare ($5.0 billion), while reduced flows were observed in financials, industrials and materials.
Laura Cooper, senior macro investment strategist for iShares EMEA at BlackRock, said, “June capped off a record H1 for flows into fixed income ETFs in Europe, as yield-seeking investors continued to turn to bonds. The record-setting period included the highest inflow month year-to-date in June, with USD98.3 billion added to global ETPs.
“The month also saw a rotation out of European equities, as investors allocated back to the US after a period of holding European exposures – a trend that played out for far longer than usual throughout 2023.”
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