The BlackRock ETP Landscape Report for March explains that US equity ETPs generated $15.8 billion in March, with flows remaining steady until suggestions were made by the US Federal Reserve to increase interest rates more quickly.
BlackRock head of ETP research Dodd Kittsley said investors avoided more expensive areas of the US ETP market, with US health care ETPs experiencing outflows of $1.2 billion following March 20.
Mr Kittsley said the move towards value was positive for financial ETPs, which generated $1.6 billion during March, as well as for US large-cap equity funds, which accumulated $5.5 billion for the month.
According to the report, outflows for emerging markets equity ETPs moderated to $1.8 billion as selling pressures eased.
“The last week of March actually brought inflows as investors anticipated the Chinese government may take steps to stimulate the economy,” said Mr Kittsley.
“Excluding China, single country emerging market equity ETPs flows were flat but did rally $1.3bn from mid-month driven by Russia, South Korea and Mexico.”
Mr Kittsley said Japan equity ETPs experienced outflows of $0.7 billion in March with the sales tax set to increase in the second quarter of 2014.
Mr Kittsley said pan-European equity ETPs also shed $0.9 billion as the “slow pace of the Eurozone’s economic recovery, downward revisions to 2014 corporate earnings estimates and geopolitical concerns surrounding Russia all weighed on flows”.
