Around 78% of ETF investors believe emerging markets will supersede the west at the end of the recession, according to an investor survey by iShares.
The provider says the results of the survey reflect the trends in ETF asset flows. iShares head of sales strategy Europe Nizam Hamid says flows into emerging countries exchange-traded products over the last 12 months amounted to €2.2bn compared with €1.8bn in developed market countries.
Hamid says fixed income has become an important asset class in the ETP space, with corporate bonds gaining inflows of €3.3bn over the past year.
He adds: "Furthermore, in the past six months, inflation linked ETFs have attractive €1.1bn of assets as investors consider the risks to current price stability."
The survey also reveals 90% of investors believe corporate bonds are pricing in a recession followed by a recovery, rather than just a depression.
Around 61% of those surveyed believe the recovery will form the shape of a W, as opposed to a U or a V and 55% think they should be overweight on defensives, rather than cyclical stocks. 63% think inflation will rise in 2010.
Hamid says: "Investors are facing unprecedented challenges and are clearly using ETFs to help implement their investment strategies."
iShares surveyed a range of investors including institutional, private banks and high net worth managers.
Achievements, charity work and other happy snippets
Laughable excuses for persisting
Spent 56 years at Schroders
Warns on profits