According to BlackRock data, global ETPs, which include both exchange traded funds and exchange traded notes, attracted $56 billion in net inflows over November, its best month since December 2014.
The election week flows made up almost three-fourths of the month’s total as investors piled into U.S. stock ETFs while U.S. equity indices pushed to record highs.
U.S. equity-related ETFs were the clear winners, attracting new monthly flow records in targeted Trump plays, like small-caps, financials and industrials, along with strong bumps to large-caps on hopes of new stimulus and supportive policies. U.S. large-caps saw $19.8 billion in inflows and U.S. small-caps attracted $10.5 billion, a new monthly flow record. The financial sector experienced the largest gains, bringing in $8.3 billion, followed by the $4.9 billion into industrials.
While attention veered from bonds, inflows into fixed-income still remain on record year-to-date pace, with record monthly flows into U.S. Treasury inflation-protected securities of $2.4 billion on increased inflationary bets. On the other hand, traditional U.S. Treasury-related funds saw $2.0 billion in net redemptions as yields spiked on speculation of higher interest rates in the U.S. to combat the rising inflation outlook.
Gold also bled $4.5 billion over the month as higher rates, strengthening USD and improving prospects for economic growth weighed on safe-haven demand.
Meanwhile, emerging market assets were among the least popular investments, with emerging market stock ETFs losing $3.2 billion and emerging debt shedding $3.3 billion as the U.S. dollar strengthened on rising rate bets.
Year-to-date flows jumped to $321.2 billion as of the end of November, which is already ahead of 2015’s record-setting pace. The global ETP industry now manages $3.4 trillion in assets under management.
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