ETF net flows worldwide slowed down significantly to US$11 billion during April 2016, compared to $45 billion of net deposits in March. Equity products only saw US$2 billion in net flows, suffering a decrease of US$18 billion from the prior month, while bond products recorded US$7 billion in net new money. ETF assets stood at almost US$3.1 trillion globally.
In the U.S., equity products took in a moderate US$7 billion amid the recovery of the equity market. Equity US – Large Cap led with nearly US$5 billion of inflows, followed by Bond USD at US$4 billion. On the other hand, Bond USD – Short Term suffered net redemptions of US$2 billion.
ETFs in Europe garnered US$4 billion in net flows, mainly driven by bond products. Equity products reported net withdrawals of US$1 billion, which was completely offset by the same amount collected in Gold ETF products. Asia experienced net redemptions of US$6 billion. ETFs in Japan led the decline in the region with almost US$4.6 billion of net redemptions for the month.
Lyxor US$ 10Y Inflation Breakeven UCITS ETF C- USD was the biggest ETF new launch in April, attracting US$117 million in net flows. It tracks the Market IBoxx USD Breakeven 10-Year Inflation Index, which enables investors to obtain a measure of market expectations for inflation over a specified period of time generally referred to as the “breakeven rate of inflation (BEI)”.The ETF is one of the sub-funds of Multi Units Luxembourg, an umbrella fund registered in Luxembourg and managed by Lyxor International Asset Management.