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

Correction causes investors to rotate out of US large caps
In the week ending 9 February, investors appeared to have shut the door after the horse had bolted, with US large caps posting record outflows following a two week sell-off in markets.
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.

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