Some investors have been underweight Europe, but compelling valuations and improving economic data are helping change that situation as investors embrace Europe ETFs. Pan European flows maintained momentum gathering $3.5bn although the pace slowed from the record setting totals witnessed in the prior three months. Year-to-date the category has gathered $24.0bn in contrast to outflows of ($6.5bn) from German ETPs, said BlackRock. [Attractive Valuations Lurk Among Europe ETFs]
“The pickup in Pan-European flows this year has by-and-large not spread to single country exposures, which saw outflows of ($1.0bn) in November. Country funds have year-to-date outflows of ($1.6bn) as some of the money attracted to German Equities in recent years has reversed – ($6.5bn) thus far in 2013. This has been partially offset by strong inflows into UK Equity funds,” noted BlackRock..
The WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) remained this year’s top asset-gathering ETF at the end of November with 2013 inflows of almost $9.1 billion while the SPDR Gold Shares (NYSEArca: GLD) was the worst offender on the outflows front with $23.2 billion in outflows.
“Currently the high risk group in US equities includes Small Cap Equities and ETPs that track Gold Miners,” according to the BlackRock Risk Sentiment Measure.
Global Equity ETP YTD Flows by Exposure
Chart Courtesy: BlackRock. ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of DXJ and GLD.