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The crown pandemic caused the overall stock markets to collapse in March. Still, ETFs raised net fresh money. However, the details of current market statistics reveal vast differences with respect to different asset classes.
© Jakub Jirsák / stock.adobe.com
Indexed publicly traded funds (ETFs) and other publicly traded products (ETPs) posted net cash inflows in March, despite panic that the coronavirus spread to capital markets. Worldwide, index followers raised $ 17.2 billion in March, according to an analysis by asset manager BlackRock. That was the last time the cash inflows were in August 2019, but at least they were still in the positive range.
However, a look at the different asset classes reveals significant differences: Investors withdrew $ 34.5 billion from the bond ETFs. According to BlackRock, these are the strongest monthly net flows since the start of recording, and the first since June 2015. “In contrast, commodities had the highest monthly inflow in history, at $ 11.7 billion,” he said. asset manager. Gold ETPs only accounted for $ 7.7 billion. The precious metal is considered a crisis currency. However, exchange-traded papers on crude oil also recorded inflows. Obviously, many investors saw the sharp drop in oil prices as an exaggeration.
Sustainable investment ETF still in demand
“There was also no sign that investors were giving up in the equity sector,” reports BlackRock. Globally, investors pumped $ 35.3 billion net in equity ETFs in March. The coronavirus also failed to halt the trend toward sustainable investments: The corresponding ETFs and ETPs raised $ 14.6 billion in the bottom line, after $ 23.5 billion in February. (bm)
