ETF Snapshot: Global Stock ETFs Post Strongest Weekly Flows

The asset class saw inflows of €2.9bn, building on positive flows of €3.2bn over the two weeks prior.

In January's World Economic Outlook the International Monetary Fund (IMF) revised October's estimate for world growth in 2018 up 20 basis points to 3.9% on the back of "increased global growth momentum" and the impact of President Donald Trump's tax cuts in the US.

This could be a contributing factor to the inflows seen in global stock ETFs, which are yet to see a week of outflows this year.

Also recording positive flows in equities were European large caps, which saw inflows of €186m, as investors breathed a sigh of relief at the announcement of the "Grand Coalition" in Germany on 7 February between Chancellor Angela Merkel and Martin Schulz's Social Democratic Party (SPD).

US large caps saw outflows of €2.6bn, its second week of negative flows, as a correction in markets in early February continued to spook investors. Also recording outflows were small caps, which saw €1.9bn in redemptions.

In emerging markets, emerging bonds were in the red with negative flows of €946m while emerging stocks and Asian large caps saw inflows of €1.4bn and €86m, respectively.

Across fixed income, developed high yield bonds were also in the red with outflows of €2.8bn while developed investment grade bonds and developed government bonds saw more positive flows of €1.5bn and €2.7bn, respectively.

TrackInsight's data covers both US and European-listed ETFs that in combination make up around 70% of the total market.