
China and emerging market-focused ETFs were winners in October, when concerns about the US election and the second wave of Covid-19 hit fund flows for ETFs.
Confidence in Asia’s ability to bounce back more quickly than Europe from Covid-19 saw investors allocate €778 million (US$924 million) to Chinese and €592 million to emerging market government fixed income funds.
In equities, it was Asia’s ability to control the virus that boosted investor confidence in China and emerging markets with ETFs focused on these regions picking up assets of €413 million and €554 million, respectively.
The figures, which are for ETFs domiciled in Europe, are from Amundi, and showed that European-registered equity ETFs still gained in October to the tune of €2.6 billion.
But pre-election jitters caused investors to withdraw €1.3 billion from North American strategies while worries about the rapid increase in Covid saw a reduction of €296 million from eurozone strategies.
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