ETF Trends
ETF Trends

Global exchange traded products attracted huge inflows in November after a surprise Donald Trump victory in the U.S. presidential election helped the equities market rally.

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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