In the below article we can read a snippet from the EMEA Listed ETF Flash Flows report from SPDR effective as of September 30, 2020.
Equity markets retreated in September after a strong rally since the peak of the Covid-19 crisis in March. Technology heavy S&P 500 which lifted markets earlier, dropped 3.8% over the month driving Global Equities down 3.2%. Despite that correction in stock markets, ETFs saw improved risk appetite from investors as Equities posted very strong net inflows. This is a turn from previous months largely dominated by Fixed Income and Commodity exposures. Within Fixed Income space, Euro Government Bonds were up 1.4% while inflation linked bonds underperformed slightly. As such, Government Bond ETFs enjoyed strong net inflows, last month. Gold, which have had a fantastic year so far, saw some correction in September. However, this has not stopped flows into Precious Metals ETFs , which captured $2.3bn of net inflows in September.
Asset Category
• ETFs posted $8.3bn of net inflows in September, driven mainly by Equity, which gathered $7.3bn, and Commodity, which added $1.3bn.
• Fixed Income saw net outflows of $342mn last month.
Equity Region
• US and Global led inflows into Equity, gathering $3.5bn and $2.9bn, respectively. EM also enjoyed decent-sized inflows, collecting over $1bn last month.
• Europe, on the other hand, endured net outflows of $789mn.
Equity Sectors
• Thematic captured $1.2bn while Materials picked up $849mn in September.
• Health Care and Consumer Staples saw modest net outflows of $22mn and $15mn, respectively.
Fixed Income
• Corporate bled nearly $1.7bn last month, followed by Convertible, which lost $174mn.
• Government and Inflation-Protected exposures posted strong inflows of $1.3bn and $266mn, respectively.
Fixed Income Credit Rating
• Investment Grade suffered a massive $2.1bn of net outflows in September, while High Yield captured $503mn.
Government ETF Maturity Focus
• The Intermediate/Long Term and the Short Term parts of the curve saw the heaviest outflows, losing $808mn and $688mn, respectively.
• Investors favoured the Long Term segment, which gathered $481mn of net inflows.
Commodity
• Precious Metals enjoyed strong net inflows of $2.3bn last month, while Broad-Based suffered $893mn of net outflows.
