Investors threw $105 billion into exchange-traded products in the first half of 2012, giving the global ETP industry the largest first-half-year inflow ever recorded, according to BlackRock’s latest ETP Landscape Report. The record $105 billion inflow is up 16% from the $90.6 billion ETPs posted in the first half of 2011, the industry’s previous high water mark for flows.
Fixed-income ETPs attracted the most net new assets, taking in $42 billion, or 41% of the global ETP inflows during the first half of the year. Of the $42 billion, $15.5 billion went to investment-grade corporate bond ETPs, according to the data.
Other income-focused ETPs, including those providing exposure to high-dividend equities, real estate and preferred stocks, drew in $17.9 billion in the first half of the 2012, up 44% from the $12.4 billion they captured in the year-ago period.
“Demand for exposure to fixed-income assets has been a key theme for the last year and shows no sign of abating, as acceptance of the value of an indexed approach to fixed income investing gains increasing traction amongst investors,” Dodd Kittsley, global head of ETP research for BlackRock, said in a statement.
The data pointed to an uptick in demand for gold in June, with gold ETPs gathering $2.2 billion in new assets after two months of outflows. Another trend in June is that the composition of equity inflows shifted more toward developed equity. U.S. large-cap equity inflows, for example, surged to $5.2 billion after tepid to negative flows in the prior two months, according to BlackRock data.
The report covers all categories of ETPs that trade intra-day on an exchange, including exchange-traded funds, exchange-traded commodities and exchange-traded notes.