Despite initial fears and reservations surrounding the fiscal cliff, exchange traded fund flows are painting a different picture as investors continue to pile into U.S assets.
“With the outcomes of the US elections and super storm Sandy known and a sense among investors that a solution to the looming fiscal cliff will be negotiated, investors put US$ 9 billion into ETFs providing exposure to the US, replacing nearly all of the outflows during October,” Deborah Fuhr, managing partner at ETFGI, a consultancy firm, said in research note.
In November, global ETFs and other exchange traded products, which include exchange traded notes, attracted $21 billion in new assets, according to ETFGI data. Year-to-date through the end of November, ETFs and ETPs brought in $223 billion. [Global ETF Assets Setting New Records]
Equity funds were still the main draw in November, attracting $13.2 billion, followed by fixed-income funds with $5.1 billion and commodities at $2.3 billion.
In the equities side, investors focused on ETFs/ETPs with North America exposure, which gained $9.1 billion in new assets, while emerging market related ETFs attracted $1.3 billion and Asia Pacific region funds brought in $1.1 billion.