05/07/2012

By Adam Cadle

The global exchange traded products (ETP) industry recorded its largest H1 inflows in history as investors increasingly seek to capture new and diversified sources of income in the face of continued global economic uncertainty, BlackRock’s latest ETP Landscape Report has revealed.

ETPs attracted net new assets of more than $100bn during H1 2012. The global ETP industry currently stands at $1.68trn, with global inflows recorded at $105bn. This represents a 16 per cent increase on the flows of $90.6bn during H1 2011.

Fixed income ETPs accounted for 41 per cent of all global ETP inflows during H1 2012, a 114 per cent increase on the same period last year.

BlackRock global head of ETP research Dodd Kittsley said: “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. During times of economic uncertainty and increased market volatility, the efficiencies, precision and flexibility that ETPs may offer tends to resonate with investors.”

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