Global ETF assets will double until 2020, according to a study by PwC. But where growth is expected to come from varies greatly between the US and Europe.
For European fund buyers, it’s either European or emerging market equities, never both. Equity market returns only partially explain the phenomenon.
The final equity category we discuss in our series is European equities. The asset class has shown strong performance, but volatility has increased sharply in recent months.
Expert Investor Europe’s latest fund manager sentiment survey suggests asset managers are following the wind, at least for European equities.
Since end October, asset management companies suddenly see much more perspective in US equities.
In October, fund selectors hastily reduced their allocations to European and emerging market equities and fled into ‘safe’ US equities.
Fund selectors and fund buyers strongly disagree where on the planet the investment climate is most benign
Business and consumer sentiment in the Eurozone is improving and is at its highest in four months according to Moodys Analytics.
European fund selectors have adopted an increasing bias towards large cap stocks. The tendency is strongest for European equities.
The short-lived market crash in October has prompted a complete fund manager sentiment overhaul. Asset manager expectations of European and EM equities have plummeted, while faith in the US stock market has soared.