ETF Snapshot: All Equity Sectors Record Positive Flows

US large-cap ETFs saw inflows of €5.2bn after the Dow Jones rose 2.9% to 24,232 points over the week, its best performance since 9 December 2016, according to the FT. Meanwhile, the S&P 500 climbed 1.5% to 2,642 points; its highest weekly rise in 11 weeks.

Strong gains came as expectations rose that US President Donald Trump's ambitious reforms, which would see corporation tax cut from 35% to 20%, would be implemented.

The Senate passed a new version of the Tax Cuts and Jobs Act on 2 December by 51 votes to 49, meaning it will now need to be merged with the legislation that passed in the House of Representatives before being signed off by Trump.

Small-cap ETFs closely followed US large caps with inflows of €3.2bn over the week, while global stocks built on the strong flows in the week ending 17 November with €1.2bn of inflows.

Despite German Chancellor Angela Merkel failing to secure a coalition, European large caps saw inflows of €601m, a sign investors remain bullish about the European equity market recovery.

In the fixed income space, developed government bonds were in the red, posting outflows of €203m, while developed investment grade and developed high yield bond vehicles saw inflows of €294m and €693m respectively.

Meanwhile, across emerging markets, Asian large caps and emerging stocks were both in the black with inflows of €252m and €596m respectively, while emerging bonds saw negative flows of €228m.

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