ETF Snapshot: Correction Causes Investors To Rotate Out Of US Large Caps

According to data from TrackInsight, US large caps were the only equity asset class to see negative flows, with outflows of €12.8bn compared to €22.9bn inflows over the two weeks prior, as investors panicked after US markets neared a technical correction.

The Dow Jones suffered its worst weekly loss since October 2008 plummeting 4.6% to 24,346 on 5 February, down 9.8% since the 11 January high.

Some investors rotated into other equity asset classes with global stocks seeing the highest flows this week with inflows of €2bn.

European large caps reversed negative flows the previous week with inflows of €715m while small caps also saw inflows of €665m.

In emerging markets, Asian large caps and emerging stocks saw inflows of €265m and €1.4bn respectively while emerging bonds witnessed negative flows of €22m.

Warning bond and equity market sell-off has further to run as inflation fears build

Developed high yield bonds were in the red for the fourth week in a row with €464m while developed investment grade bonds and developed government bonds saw strong flows of €2.9bn and €2.2bn respectively, as investors looked for protection from volatile markets.

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