The assets of the Global ETF’s increased by 8.4 percent YTD and ended March with $1.82 trillion while the European ETF industry ended the month with €267.5 billion worth of assets, according to the report released by strategists at Deutsche Bank Market Research.
Deutsche Bank AG strategists Sascha Levitt together with Sebastian Mercado and Shan Lan, observed that cash inflows into equity last month were more than $15.7 billion and cash inflows into fixed income were more than $6 billion. They also noted a $-3.2 billion cash outflows from commodity ETP’s particularly gold products.
According to the strategists, gold ETP’s remained unattractive globally after experiencing three consecutive months of cash outflows. Gold ETP’s cash outflow was $-2.4 billion in March this year, while the total gold ETP’s cash outflow YTD was $-9.3 billion.
Last March, the strategists noted that the cash outflow in European domiciled ETF’s slowed down compared with the past two months. According to them, European domiciled ETF’s received cash flows of +€4.6 billion in January, +€1.7 billion in February, +€0.2 billion in March this year.
According to them, the largest contributor in the monthly cash flows were from fixed income ETF’s with €293 million while equity ETF’s contributed +€86 million only. Commodity ETP’s posted -€864 million cash out flows and gold ETPs recorded -€323 million cash outflows, and continue to decline slowly.
Emerging and developed markets equity bench-marked ETF’s also recorded -€649 million and -€369 million cash outflows, respectively. On the other hand, the remaining equity segments received positive cash flows including primary sector (+€340 million), and dividend ETF’s (+€306 million), which offsets losses from developed and emerging markets in March.
Meanwhile US ETF’s recorded increased cash inflows from +$11.5 billion in February to +$18.8 billion in March. According to the strategists, equity ETF’s provided the largest contribution of +$13.1 billion while fixed income ETF’s added +$5.5 billion. Commodity ETP’s posted -$2.2 billion cash outflows in March.
ETF’s bench-marked to Japan received +$2.2 billion cash flows while a wide emerging markets ETF’s received -$5 billion cash outflows last month. The monthly cash inflows within equities were +$4 billion, large cap +$2.6 billion, quantitative +$2.4 billion, and US sectors +$2.2 billion. The strategist noted that fixed income had strong cash flows of +$5.5 billion in March. Commodity ETV’s posted outflows of -$2.2 billion and gold products recorded -$2 billion outflows.
In March, Asia Pacific ETP markets posted positive month cash flows with a total of +$2.3 billion. Developing market equity ETFs in the region recorded inflows of +$1.9 billion and emerging equity ETF’s posted -$341 million.
ETF’s offering exposure in Japan posted +$1.6 billion inflows, Hong Kong +$226 million, while South Korea recorded -$216 million and Taiwan -$158 million out flows. Leveraged and dividend ETF’s increased with +$861 million and +$183 million inflows, respectively.