ETF flows worldwide slowed down noticeably to US$40 billion during July 2016, following US$62 billion of net deposits in June. Equity products brought in majority of the net flows at US$27 billion, while bond products added US$14 billion. Commodity and other ETFs (mostly Alt- Leveraged/Inverse products) experienced net withdrawals of US$2 billion. Global ETF assets rose to US$4.274 trillion as of July 2017.
In the U.S., equity ETFs gained US$17 billion of net flows, while bonds amassed US$12 billion in net new cash. Equity US - Large Cap led with US$6.4 billion of inflows, followed by Bond North America with US$5.8 billion in net new money.
ETFs in Europe garnered US$10 billion of inflows, mainly driven by equity products (US$6 billion). European bond and commodity (mostly gold ETFs) products each attracted US$2 billion in net flows for the month. In Asia, ETFs recorded US$4 billion of net flows, mainly driven by Equity Japan with US$3.8 billion of inflows.
The Ireland-domiciled iShares Diversified Commodity SWAP UCITS USD ETF was the largest ETF new launch in July, attracting US$521 million in net flows. The ETF seeks to track the performance of an index which offers indirect exposure to commodities through the use of a total return swap. The Fund is benchmarked to the Bloomberg Commodity (Total Return Index) and is listed on the London Stock Exchange.