Markets corrected part of the previous week rally during last week. The US (S&P 500) dropped by 0.55%. While, outside the US, the MSCI EAFE (in USD) fell by 0.65% and the MSCI EM (USD) rose by 1.05%. Moving on to other asset classes, the 10Y US Treasury Yield declined by 10bps last week; while the DB Liquid Commodity Index was up by 0.66%. Similarly, the WTI Crude Oil, the Gold, and the Silver prices retreated by 0.60%, 0.85% and 1.34%, respectively; while the Agriculture sector (DB Diversified Agriculture Index) rose by 2.89%. Last but not least, Volatility (VIX) edged a bit higher remaining practically flat during the same period.
The total US ETP flows from all products registered $6.7bn of inflows during last week vs $0.1bn of inflows the previous week, setting the YTD weekly flows average at +$2.9bn (+$79.0bn YTD in total cash flows).
Equity, Fixed Income, and Commodity ETPs experienced flows of +$8.7bn, -$2.2bn, and +$0.2bn last week vs. -$0.8bn, +$0.9bn, and -$0.0bn the previous week, respectively.
Within Equity ETPs, large cap products experienced the largest inflows (+$4.3bn) followed by US sector ETPs (+$1.7bn); while there were no significant outflows. Within Fixed Income ETPs, Sovereign products had the largest asset leak (-$3.2bn); while Corporates and Sovereign experienced inflows of $0.5bn and $0.4bn, respectively. Within Commodity ETPs, broad diversified products experienced the largest inflows ($0.1bn).
Top 3 ETPs & ETNs by inflows: SPY (+$2.9bn), QQQ (+$1.2bn), VWO (+$0.6bn)
Top 3 ETPs & ETNs by outflows: SHY (-$0.9bn), IEI (-$0.8bn), UST (-$0.6bn)
New Launch Calendar: no new listings
There were no new listings during last week.
Turnover Review: floor activity dropped by 32% on quieter and shorter week
Total weekly turnover dropped by 32% to $192bn vs. $282bn in the previous week. Last week’s turnover level was 49% below last year’s weekly average. Equity ETPs experienced a drop of $84.5bn or 33.9% to $165bn, along with Commodity ETPs which fell by 34.7% (-$4.7bn). In the meantime, Fixed Income ETP turnover slightly rose by 1.7% (+$0.3bn).
Assets Under Management (AUM) Review: strong inflows added $6.8bn
ETP assets added $6.8bn driven by very strong inflows into equity products. ETP assets rose by 0.6% during last week and ended the week at $1.17 trillion despite slightly negative equity markets. Last week’s push put the ETP YTD assets growth at 11.8%. Assets for equity, fixed income and commodity ETPs moved +$8.5bn, -$1.6bn, and -$0.2bn during last week, respectively.