ETF Snapshot: US Large Caps Record Massive €9bn Inflows On Trump Tax Boost

US large-cap ETFs saw inflows of €9.1bn versus €5.2bn the week prior, as investors became even more bullish about the impact Trump's tax cuts could have on businesses.

The Senate passed the Tax Cuts and Jobs Acts by 51 votes to 49 on 2 December with Senator Bob Corker the only Republican to vote against the bill.

However, after negotiations between the Senate and House of Representatives, a 503-page bill was published on 15 December with Corker announcing plans to reverse his decision and vote for the bill this week.

The measures include cutting corporation tax from 35% to 21% and reducing the rate for top earners from 39.6% to 37%.

Trump told reporters over the weekend the bill would be "one of the great gifts to the middle-income people of this country that they've ever gotten for Christmas", according to CNN.

Elsewhere, European large-cap was the only ETF equity sector in the red, posting outflows of €810m as German Chancellor Angela Merkel's continued failure to form a coalition caused investor jitters.

Martin Schulz's SPD have since agreed to hold exploratory talks with Merkel on Saturday, a potential turning point in the Chancellor's attempts to form a government since failing to win an outright majority in the September elections.

Small caps and global stocks both witnessed strong flows of €1.6bn and €1.5bn respectively following positive flows the week prior as well.

In the fixed income space, developed investment grade and developed government bonds saw inflows of €2.9bn and €2.6bn respectively, while developed high yield bonds suffered outflows of €1bn.

In emerging markets, there were positive flows for all asset classes with Asian large caps and emerging stocks posting flows of €90m and €238m, while emerging bonds saw €148m inflows.

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