ETF Snapshot: Flows Into US Large-cap ETFs Reach Fresh High

US large caps saw inflows of €12bn, the most on record, building on the €7.9bn and €7.4bn inflows seen in each of the previous two weeks respectively, according to data from TrackInsight.

The Tax Cuts and Jobs Act, which has seen corporation tax cut from 35% to 21%, boosted equity markets to their best start to a year since 1987 with the S&P 500 rising 5.9% to 2,853 points, before a wobble in the bond market caused equities to sell-off last Monday.

Elsewhere, small caps saw inflows of €2.2bn after being the only asset class in the red the previous week with outflows of €461m on the back of some underperformance in the smaller cap space versus large caps.

European large caps also witnessed inflows of €666m, despite Chancellor Angela Merkel admitting to not knowing when coalition talks with the SPD will end, while global ETFs saw inflows of €542m.

In emerging markets, all asset classes were in the black with Asian large caps and emerging stocks recording inflows of €90m and €2.9bn respectively, while emerging bonds saw €387m inflows.

Across the rest of the fixed income market, developed high yield bond ETFs was the only asset class to record negative flows with outflows of €2.3bn, while developed investment grade bond ETFs and developed government bond ETFs posted inflows of €442m and €208m respectively.

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