LONDON, April 7 European exchange-traded
products (ETPs) have seen $30.9 billion inflows so far in 2017,
more than double the average recorded in the past six years, as
U.S. investors returned to the region, partly on easing worries
over political risk easing, Blackrock's iShares data showed on
Equities are particularly in demand. The past six months
have been the largest ever six-month period of accumulation for
equity ETFs domiciled in Europe, iShares said.
Flows into equities funds surpassed those into fixed-income
funds for the sixth month in a row. Funds tracking equities
attracted $7.1 billion in March, more than double the $2.7
billion going into fixed income.
Cheaper relative valuations, a brightening macroeconomic
backdrop and growing confidence that political risks might have
been overstated are drawing U.S. investors back into the region
after a near two-year hiatus.
U.S.-domiciled European equity funds saw $39 billion in
outflows over 13 months, from December 2015 to January 2017, a
reduction in the total asset base of 45 percent.
European shares are up more than 5 percent so far
this year, outperforming other developed market peers in the
U.S. and Japan.
(Reporting by Helen Reid, Editing by Vikram Subhedar)