Global inflows into equity ETF’s have dropped by 85% throughout the first half of 2016, according to data provider ETFGI, with the volatility at the beginning of the year and the effect of the Brexit vote driving investors into other asset classes.
The trend was particularly pronounced among European equities, which suffered USD 25.5bn in outflows at the end of June, compared to USD51.8bn of inflows throughout the same period last year.
While equity ETFs struggled, investors increasingly turned to other asset classes such as fixed income or commodities, which reported net inflows of USD 67.6bn and USD 26.5bn year to date.
Nevertheless, the downward trend for equities might now be reversed, throughout June 2016, equity ETF’s saw USD 11.7.3bn, compared to fixed income, which saw USD 10.8bn, and commodities, which reported USD 6.6bn of inflows in June. Throughout the same month, leveraged ETFs reported USD 1.06bn of outflows.