ETF net flows slow over summer - Global ETF FlowWatch - October 2016 Results

ETF net flows worldwide slowed down noticeably over the summer, totalling US$21 billion during October. Equity products brought in majority of the net flows at US$14 billion, while bond and commodity (mostly gold products) added US$4 billion and US$2 billion, respectively. Despite net inflows, ETF AUM declined slightly to US$3.35 trillion globally as of October 2016.

In the U.S., equity ETFs gained US$11 billion in net new money although the U.S. stock markets dropped slightly over October. Equity US - Large Cap and Equity Emerging Markets attracted the most net subscriptions, together amounting to nearly US$11 billion; by comparison, Real Estate Equity – US saw notable outflows of nearly US$2 billion for the month. ETFs in Europe took in a moderate US$4 billion of net new money, mainly driven by US$2.4 billion of net flows into Equity products. ETFs in Asia, however, experienced small net redemptions of almost US$1 billion.

The U.S.-domiciled Elkhorn Lunt Low Vol/Hi Beta Tactical ETF was the largest ETF new launch in October, attracting US$51 million in net flows. The ETF is actively managed and tracks the Lunt Capital US Large Cap Equity Rotation Index, which is designed to tactically rotate between low-volatility and high beta stocks in the S&P 500. Notably, PowerShares QQQ, which is domiciled in the U.S. and formerly known as "NASDAQ-100 Index Tracking Stock”, amassed nearly US$2 billion in net new money during October 2016.