After a three-week losing streak, equity markets finally experienced positive figures during last week. The US (S&P 500) advanced by 1.74%. However, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) remained under pressure and dropped by 0.37% and 0.35%, respectively. Moving on to other asset classes, the 10Y Treasury yield rose by 4bps last week; while the DB Liquid Commodity Index was down by 1.06%. Similarly, the Agriculture sector (DB Diversified Agriculture Index), the WTI Crude Oil, the Gold, and the Silver prices fell by 3.04%, 0.68%, 1.25% and 0.74%, respectively. Last but not least, Volatility (VIX) retreated by 13.3% towards the low 20s during the same period.
The total US ETP flows from all products registered $3.1bn of inflows during last week vs $1.7bn of inflows the previous week, setting the YTD weekly flows average at +$2.8bn (+$58.4bn YTD in total cash flows).
Equity, Fixed Income, and Commodity ETPs experienced flows of +$2.8bn, +$1.3bn, and -$1.0bn last week vs. -$0.6bn, +$2.0bn, and +$0.3bn the previous week, respectively.
Within Equity ETPs, large cap and growth style products experienced the largest inflows (+$1.5bn, +$1.0bn respectively); while leverage short vehicles experienced the largest outflows (-$0.3bn).
Within Fixed Income ETPs, Sovereign products recorded the largest inflows (+$0.9bn), followed by broad benchmarked products (+$0.4bn); while Corporates experienced outflows of $0.2bn. Within Commodity ETPs, Precious Metals products experienced the largest outflows (-$1.0bn).
- Top 3 ETPs & ETNs by inflows: SPY (+$2.8bn), VB (+$1.0bn), EFA (+$0.5bn)
- Top 3 ETPs & ETNs by outflows: QQQ (-$1.5bn), XLE (-$1.2bn), IWM (-$0.9bn)
New Launch Calendar: Covered bonds, leveraged dividend yield, and more.
There were 2 new ETFs and 2 new ETNs listed on the NYSE Arca during the previous week. The ETFs offer access to covered bonds and to a multi asset strategy, while the ETNs offer monthly double exposure to dividend stocks. (See Figure 18 for further details)
Turnover Review: volume retreated on volatility pull-back
Total weekly turnover decreased by 17.8% to $318bn vs. $387bn in the previous week. Last week’s turnover level was 16% below last year’s weekly average. The largest absolute increase was on Equity ETP turnover, which dropped by $58.9bn or 17.2% to $283bn. Fixed Income ETP and Commodity ETP turnover followed with decreases of 20.3% (-$4.3bn) and 26.7% (-$5.3bn), respectively.
Assets Under Management (AUM) Review: assets rose along with the market
Bears felt somewhat giving last week and granted the bulls some room to run, after 3 consecutive weeks of red figures. Positive equity markets and healthy inflows added $12.6bn or 1.1% to ETP assets last week, bringing assets up to $1.12bn or up 7.4% YTD at the end of last Friday. Assets for equity, fixed income and commodity ETPs moved +$13.9bn, +$1.3bn, and -$2.3bn during last week, respectively.