ETF net flows worldwide slowed down significantly to US$5 billion during June 2018, compared to US$36 billion of net deposits in May.
Equity products reported net withdrawals of US$1 billion, while bond products recorded US$9 billion in net new money. Commodity products (mostly gold ETFs) also experienced net withdrawals of US$3 billion. ETF assets dropped to US$4.976 trillion globally.
In the U.S., equity ETF products suffered US$9 billion in net redemptions amid increasing market volatility. Investors pulled out over US$13 billion from Equity US – Large Cap and Equity Emerging Market. In addition, commodity products suffered net redemptions of US$3 billion. M bond ETFs recorded US$8 billion in net inflows, mainly to Bond North America and Bond USD-Short term products.
European ETFs saw marginal outflows of nearly US$1 billion, mostly attributed to Equity Europe- Large Cap and Equity Emerging Market products. Asia garnered the largest amount of inflows (US$8 billion) among all regions. Equity Japan became the top-selling category with nearly US$7.9 billion in net subscriptions.
The U.S.-domiciled GS JUST US Large Cap Equity ETF was the largest ETF new launch in June, attracting US$251 million in net flows. The ETF seeks to provide broad exposure to U.S. large cap equities, with a focus on companies that demonstrate just business behavior as measured by JUST Capital and tracks the JUST U.S. Large Cap Diversified Index. The ETF is currently listed on the NYSE Arca exchange.