Posted inEquities

Signs of US equities comeback emerging

The asset manager said exchange traded product flow data has shown investors moving money into developed market equities, particularly the US.

US equities have seen significant outflows over recent months as many investors rotated into European and Japanese equities, but this data indicates the tide may have turned.

According to BlackRock, US equities trackers added $9.8bn in June, becoming the most popular asset class of the month.

Other popular themes for the month were Japanese equities which attracted $5.7bn, and currency hedged equities funds, which added $3.3bn.

“The clear trend amongst investors in June was a renewed demand for equities, particularly in developed markets,” said head of ETP research Ursula Marchioni. “After outflows in May, US equity demand rebounded to top the charts in June. Small and mid-cap US equity funds and products offering exposure to the healthcare, technology and financial sectors saw particular interest, suggesting confidence in the outlook for the US economy and a renewed appetite for risk-taking.”

“Interest in Japanese equities continued and grew into a global trend, going beyond the previously recorded inflows which were mostly driven by Asia Pacific investors. Flows into US-listed Japan products exceeded $1bn for the fifth consecutive month,” she added. “Looking at ETPs tracking pan-European assets, the flows behaviour reflected the wait-and-see attitude towards Greece’s negotiations most ETP investors implemented.” 

Part of the Bonhill Group.