Trade tensions and global stock markets causing uncertainty - Global ETF FlowWatch - May 2019 Results

Worldwide ETF flows suffered net redemptions of US$4 billion during May 2019 amid uncertainty of the global stock markets and increasing trade tensions. Bond ETFs led with US$11 billion in net new money, followed by commodity (mostly Alt-Leveraged/Inverse) ETFs gathering US$0.6 billion in net flows. Meanwhile, equity ETFs experienced net redemptions of US$16 billion. Global ETF assets shrunk to US$5.3 trillion during the month.

In the U.S., bond ETFs garnered nearly US$7 billion in net new flows, while equity ETF products saw nearly US$17 billion in net redemptions. Notably, Bond North America and Bond USD- Short Term were the two best-selling categories accumulating nearly US$6.1 billion and US$3.7 billion, respectively. Commodity ETFs suffered net redemptions of US$1.1 billion.

In Europe, ETFs added a modest US$2 billion in net new cash, mainly driven by bond and commodity ETFs which gathered a combined US$1.3 billion in new investor money. Equity ETFs in Europe stayed relatively flat with US$130 million in net flows. ETFs in Asia recorded US$1 billion in net flows, primarily driven by Alt-Leveraged/Inverse and bond ETF products. Meanwhile, equity ETFs in Asia suffered net redemptions of US$1.6 billion.

iShares ESG MSCI USA Leaders ETF was the largest new ETF launch in May 2019, accumulating US$1.1 billion in net new cash. The ETF is traded on the NASDAQ exchange and seeks to track the investment results of the MSCI USA Extended ESG Leaders Index. The ETF is an addition to BlackRock’s ESG ETF lineup.