Developed market ETF flows dry up

Rotations out of bonds into equity ETFs and from emerging to developed market funds wound down last week, although there is no sign yet of the process being reversed. The week began with a pullback in equities, and despite some recovery on Friday global indices finished the week firmly in the red - the S&P 500 down 1.5% and the EuroStoxx down 2.7%. Global equity ETFs meanwhile saw redemptions worth $2bn after two weeks of decent inflows, including a loss of $4bn from US equity funds. Overnight moves in Asia have though continued the week's late rebound and indices are trading higher ...