By Staff reporter
Net exchange traded product (ETP) flows in August doubled the level of August 2011, as investors continue to tap ETPs for enhanced portfolio flexibility and diversity according to latest figures.
In August, the global ETP industry attracted net assets of $12.1bn (£7.56bn), more than twice the $5.3bn collected in August 2011, despite lower overall trading volume. As of month end, global ETP assets totaled $1.76trn, compared with $1.72trn at month-end July and $1.58trn at the end of August 2011.
During the month, ETP investors showed an increased interest in Gold and Volatility ETPs. With gold a natural beneficiary of a low interest rate environment, flows into Gold ETPs reached their highest level in 2012, with $3.6bn in net flows. Volatility ETPs, which seek to deliver returns correlated to measures of market volatility, attracted nearly $1bn.
Fixed income drew $6.5bn for the month with all major fixed income categories attracting net inflows, led by investment grade corporate with $1.6bn and high yield with $1.3bn.
According to Dodd Kittsley, global head of ETP Research at BlackRock: "The breadth of unique and precise exposures that ETPs offer has been a crucial factor in the industry’s strong ongoing growth. The flows reflect how ETP investors are repositioning their portfolios to act on market opportunities that they see emerging, even in the midst of global uncertainty."