The global exchange-traded product (ETP) category continued to gain momentum in January, although Canadian products suffered negative flows, according to new data from investment management giant BlackRock.
In a new report, the firm notes that global asset flows for ETPs totaled US$40.2 billion in January, which represents a new high for the month (January 2012 was the previous high at US$33.5 billion). Equities garnered almost all of the net flows, 94% worth, it says, led by emerging market products.
Blackrock says that emerging markets equity ETPs gathered US$13.2 billion net flows in January, accounting for 35% of total equity flows, despite representing just 20% of total equity assets.
However, products listed in Canada bucked the trend, recording US$0.5 billion in negative net flows for January; following a year in which they recorded US$12.0 billion in positive net flows.
Funds invested in Canadian equities saw US$633 million in negative net flows in January. Nevertheless, Canadian products finished January with US$56.5 billion in assets.
BlackRock notes that the global ETP industry surpassed the US$2 trillion mark in total assets in mid January, finishing the month with US$2.04 trillion in assets.
“After crossing the milestone figure of US$2 trillion in total assets, the global ETP industry shows no signs of slowing down,” says Dodd Kittsley, global head of ETP Research at BlackRock. “Investors have been encouraged by continued low interest rates, moderated concerns about Europe, an improved economic outlook in China, and acceptable earnings results from U.S. corporations.”