US equity ETPs attracted $52.2bn (€48.68bn) in the aftermath of the US elections, while European equity ETPs also reported marginal inflows, according to the November data presented in BlackRock’s monthly ETP landscape report.
The report highlights US financials, industrials and healthcare as the main beneficiaries following Trump’s election, the sectors attracted $8.2bn (€7.6bn), $3.5bn (€3.26bn) and $2bn (€1.87bn) respectively.
Ursula Marchioni, chief strategist for iShares EMEA explains: “The results triggered inflows into US equity ETFs on expectations of President-elect Trump’s pro-growth policies. The inflows largely went into broad large cap exposures, as well as financials which benefited from yield curve steepening and expectations of lower regulation under Trump’s administration. Health care, pharmaceuticals and biotechnology exposures also saw net positive flows. US small cap and US value exposures were also in favour, benefiting from the reflationary trend.
Meanwhile, European equity ETPs only reported modest inflows of $1.2bn (€1.1bn), with European healthcare, financals and oil & gas equities attracting a combined $500m (€466.2m).
Emerging markets reported the biggest outflows both for the equities and fixed income segment with Chinese and Indian equity ETPs reporting outflows of $845m (€788m) and $217m (€202m) respectively. Meanwhile, Emerging Market debt ETPs reported a total of $3.5bn (€3.26bn) in outflows throughout November.
“Emerging market debt ETPs, specifically government debt and sovereign bond exposures, saw outflows driven by Trump’s anti-trade rhetoric and stronger US dollar. In the US, treasuries saw large outflows on the back of a reflation-driven back up in yields while TIPS exposures gathered flows in anticipation of ongoing inflationary pressures” Marchioni adds.