Laurent Kssis at LaBranche Structured Products Europe (LSPE) discusses weekly European ETF trades.
A clear theme emerging from last week was increased interest in high yield bonds ETFs.
Investors favoured the iShares Markit iBoxx Euro High Yield ETF, which has $160m in assets under management, and the iShares Barclays Capital Euro Aggregate Bond ETF, which saw $61m in creations, according to iShares.
The iShares Markit iBoxx Euro Corporate Bond fund was also popular, with around $93m in creations. In total, the bonds market represented 55% of our creation orders, while ETFs tracking China represented around 25%.
We also saw large inflows into ETFs providing BRIC exposure. iShares says it has seen $137m in creation orders in its fund, and into ETFs tracking China, with Lyxor's ASI and iShares' FXC proving popular.
One interesting event we noticed was significant on-screen sales of db x-trackers Emerging Markets ETF. Conversely, iShares reported creation orders of $95m in its MSCI Emerging Market ETF.
The clean energy fund offered by iShares on the S&P Global Clean Energy index was sold on and off-screen, with iShares reporting redemptions of $20m, amounting to more than 10% of the total fund.
India was also in demand, both on and off-exchange, with investors buying the db x-trackers S&P CNX Nifty ETF on-screen and the Lyxor ETF MSCI India mainly off-exchange. Lyxor reported creation orders of €24m.
Finally, we continued to see sellers of ETFs tracking the banks sector, across all providers, as well as travel and leisure.
This report is not an offer to sell or a solicitation of any investment products or other financial product or service, an official confirmation of any transaction, or an official statement of LSPE.
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