Outperforming international equities are drawing massive inflows in May. Global equity MFs and ETFs have hauled in $26.7 billion so far this month, on track for their fourth-highest monthly inflow on record. Meanwhile, U.S. equity MFs and ETFs have shed $27.9 billion, set for their biggest monthly outflow since April 2015.
The huge flow disparity is probably due mainly to the performance of international equity funds, which are up 13.2 percent in 2017, nearly double the 7.1 percent gain for their U.S. counterparts.
Breaking global equity fund flows down, global equity MFs have hauled in an estimated $7.0 billion ($350 million daily) in May, while global equity ETFs have reeled in $19.6 billion ($1.0 billion daily). The inflow into global equity ETFs is on track to be the most since April 2015, when these funds brought in $24.8 billion ($1.1 billion daily).
Europe has been by far the most popular region in May. Europe equity ETFs have hauled in a stunning $4.2 billion (7.8 percent of assets), building on April’s inflows of $2.5 billion (5.4 percent of assets) and March’s inflows of $1.7 billion (3.9 percent of assets). Inflows have been accelerating ever since January and this month’s inflow is on track to be the highest since April 2015.
Emerging Markets equity ETFs also have been drawing plenty of fresh cash, taking in $4.3 billion (3.0 percent of assets) in May, on track for their sixth consecutive monthly inflow.
David Santschi is the CEO of TrimTabs, a division if Informa Business Intelligence.
