Equity ETF and ETP Investors Increase Exposure to Emerging Markets 6-Fold in 2012

ETFs and ETPs investing in emerging market equities have on aggregate attracted new money inflows of US$36.67 billion so far this year. The figure is 6.4 times greater than the US$5.7 reported for the same period of 2011, according to the latest study by ETFGI. Fixed-income has not fallen behind, with inflows reaching US$7.19 billion, up from US$2.16 billion last year. This is 3.3 times more than the amount for 2011.

Globally, fixed-income instruments saw inflows worth US$114 billion, an increase of US$23 billion compared with the total funds received in 2011. By regions, the U.S. attracted a large part of the year's inflows with more than US$52.8 billion, an increase of more than US$4 billion compared with the total investment gathered in 2011. Emerging markets are second, with new money inflows of US$36.67 billion, way above the US$3.68 billion reported for all of last year or the US$5.7 billion new money reported for the first ten months of 2011.

Turning to fixed-income ETFs and ETPs, total inflows for products of this kind amount to almost US$57 billion so far this year, an increase of US$21 billion compared with the same period in 2011. Corporate bonds have attracted a large share of the investment with more than US$23.4 billion in 2012, far ahead of the US$11.4 billion in 2011. They are followed by high-yield bond products, with inflows worth US$14.02 billion so far this year.

Lastly, commodity ETFs and ETPs have reported new investments worth US$20.21 billion so far this year, which is approximately US$5 billion more than the figure for the whole of last year. Precious metals are the leading investment with US$17.6 billion new money in 2012.

 

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