Global exchange-traded products saw positive flows in March despite elevated market volatility and even though fixed income suffered its worst monthly outflows on record.
Global ETPs saw $17.2 billion (€15.8 billion) of new cash, although this was the lowest level since August last year.
Investors withdrew $34.5 billion from global fixed income ETPs, according to the latest figures from BlackRock, due to “indiscriminate selling” of the asset class at certain points throughout the month.
Investors sought to use ETPs as liquid vehicles amidst the overall lack of liquidity in the underlying market, the asset manager said.
Despite the increased market turbulence, money did start to return to fixed income towards the end of the month.
Equities saw $35.5 billion of inflows, helping to offset the redemptions seen in fixed income.
Meanwhile, as investors sought out a safe haven during the current crisis, commodities saw their largest inflows on record with $11.7 billion moved into the asset type.
Gold ETPs enjoyed inflows of $7.7 billion, and crude oil also saw record monthly inflows with $6.1 billion added.
“The ongoing supply dynamics between Saudi Arabia and Russia do not appear to have deterred investors, who have increased their buying in crude oil every month this year,” a spokesperson for BlackRock said.
The US asset manager also highlighted that flows into sustainable ETPs continued, with investors adding $14.6 billion, following on from the $23.5 billion added in February.
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