Markets moved higher during last week. The US (S&P 500) edged higher by 1.71%. While, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) rose by 1.25% and 0.56%, respectively. Moving on to other asset classes, the 10Y US Treasury Yield rose by 9bps last week; while the DB Liquid Commodity Index was down by 0.76%. Similarly, the Agriculture sector (DB Diversified Agriculture Index) and the WTI Crude Oil pulled back by 0.89% and 1.43%, while Gold and Silver prices advanced by 2.42%, and 1.57%, respectively. Last but not least, Volatility (VIX) rose by 2.6% during the same period.
The total US ETP flows from all products registered $3.0bn of outflows during last week vs $5.5bn of inflows the previous week, setting the YTD weekly flows average at +$2.7bn (+$81.0bn YTD in total cash flows).
Equity, Fixed Income, and Commodity ETPs experienced flows of -$3.1bn, +$0.6bn, and -$0.5bn last week vs. +$5bn, +$1.2bn, and -$0.8bn previous week, respectively.
Within Equity ETPs, emerging markets products experienced the largest inflows (+$1.0bn); while large cap products had the largest outflows (-$4.7bn). Within Fixed Income ETPs, corporate products had the largest inflows (+$0.3bn); while sovereign ETPs experienced the only outflows (-$0.1bn), respectively. Within Commodity ETPs, precious metals products experienced the largest outflows (-$0.4bn), while the other sectors experienced less relevant flows.
- Top 3 ETPs & ETNs by inflows: VWO (+$1.0bn), IWM (+$0.3bn), DIA (+$0.3bn)
- Top 3 ETPs & ETNs by outflows: SPY (-$3.4bn), QQQ (-$1.6bn), GLD (-$0.3bn)
New Launch Calendar: new active sector rotation strategy
There was 1 new ETF listed during last week. The new product offers exposure to an active asset allocation strategy by investing in companies which sectors are believed to have the greatest potential for capital appreciation according to the fund’s managers.
Turnover Review: floor activity rose by 21.1%
Total weekly turnover increased by 21% to $289bn vs. $238bn in the previous week. Last week’s turnover level was 23% below last year’s weekly average. Equity ETPs experienced an increase of $46.7bn or +22.3% to $256bn along with Fixed Income ETPs which rose by 19.8% (+$2.8bn). In the meantime, Commodity ETPs turnover experienced a small decline (-0.1%).
Assets Under Management (AUM) Review: assets rose by 0.8%
Positive markets drove ETP assets up by 0.8%, in spite of sizeable outflows of $3.0bn during last week, ending the week at $1.19 trillion. As of last Friday, US ETPs have accumulated an asset growth of 13.5% YTD. Assets for equity, fixed income and commodity ETPs moved +$8.0bn, +$0.4bn, and +$1.5bn during last week, respectively.