ETF Snapshot: European Large-caps Post Outflows As Merkel Coalition Breaks Down

ETF round-up of flows
In the week ending 17 November, European large caps was the only equity asset class to record outflows, according to data from TrackInsight, after German Chancellor Angela Merkel failed to form a coalition.
European large caps saw outflows of €591m, building on the €276m outflows the week prior, as investor jitters surrounding the German political landscape resurfaced.
By only winning 33% of the vote compared to the 42% she gained in 2013, Merkel was forced into coalition talks with the FDP and the Greens, which have since fallen apart meaning Germany could once again be heading to the polls.
Global stocks were the best performing equity asset class, recording €1.2bn inflows, while small caps posted inflows of €536m.
Meanwhile, US large caps reversed the €1.5bn outflows seen the week prior by seeing €296m inflows as worries around President Donald Trump's failure to pass his ambitious tax reforms seemed to fade.
In the fixed income space, developed high yield bond ETFs continued to be out of favour with investors.
The asset class recorded outflows of €513m last week and €1.9bn the week prior compared to year-to-date inflows of €7.6bn to the end of October.
Developed investment grade bonds witnessed the strongest inflows of the week with €1.3bn while developed government bonds were also in the black with €476m inflows.
In the emerging markets space, emerging stocks and Asian large caps saw inflows of €148m and €50m respectively while emerging bonds were in the red, posting €57m outflows.
TrackInsight's data covers both US and European-listed ETFs that together make up around 70% of the total market.
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