Emea fixed income ETFs attracted $10.7 billion net new assets in July, the strongest month on record, taking the year-to-date total to $38.9 billion, according to Bloomberg and Invesco data.
According to the data, safe haven asset classes of cash and government bonds saw the highest inflows during that period.
In July, fixed income markets experienced strong performance as yields rallied in response to weaker economic data, prompting expectations of rate cuts, according to Paul Syms, head of Emea ETF fixed income and commodity product management at Invesco.
This environment led to record net inflows of $10.7 billion into Emea-domiciled ETFs, pushing the year-to-date total to $38.9 billion.
According to Syms, investors favoured safe-haven assets like cash management and government bonds, but demand was also strong for investment-grade and high-yield credit ETFs.
Cash management led net inflows in July with $1.8 billion, followed closely by U.S. Treasuries, also at $1.8 billion, primarily in ETFs with sub-1-year maturities. Euro and USD investment-grade credit ETFs attracted $1.7 billion and $1.1 billion, respectively, while Euro government bonds added $0.6 billion. Outflows were minimal, with only ETFs focused on Development Bank bonds seeing significant selling at -$0.3 billion.
