This is in contrast to ETF/ETP investors in the US, who withdrew $15.9bn from equity funds, and $2.1bn from commodity funds, while adding $566m into fixed income.
European listed ETF/ETP investors directed $4bn to equity funds, with $2.1bn going into fixed income funds. Commodity funds continued to experience net outflows, losing $705m.
This difference may be a function of valuation, with US markets now looking expensive and European markets still holding some value. Deborah Fuhr, Managing Partner at ETFGI, says: “The buying patterns of European based investors indicate that they are more confident about developed markets including the US than investors based in the US in January 2014.”
During the month, UBS was the most popular provider, drawing net inflows of $1.8bn, followed by iShares with $1.3bn and Lyxor with $1.2bn. ZKB experienced the largest net ETF/ETP outflows in January, losing $223m, followed by Deka with falls of $179m.