European ETP AUM hit record level last week

Assets under management in European exchange-traded products (ETPs) reached a record €243bn last week, Lyxor reports.

On-exchange commodity ETP turnover was strong, increasing by more than 71% on the previous week. This put commodity ETPs in second place by turnover, with country-specific ETPs leading the volumes.

Cowen also reports strong on-screen volumes in commodities, with ETF Securities' Gold experiencing high trading volumes. Its wheat and corn products reached new levels, driven by rising wheat and corn prices.

As the European equity markets picked back up there were outflows of €325mn from European ETPs, according to Deutsche Bank's Weekly Review.

Equity ETFs had outflows of €135mn, most of which was in non-European exposures. ETFs on the German Dax had most of the inflows (€614mn), says Deutsche.

Cowen also reported inflows in European equity ETFs; funds on the Cac 40, Dax and Eurostoxx 50 all experienced inflows of €638mn.

At the same time, there were redemptions in fixed income products: "We believe this confirms a rotation; in bonds in July out equities and reversing the trend end of August, out bonds back into equities, out from Asia back into Europe," reports Cowen.

European ETPs ended the week with assets of €225.7bn, according to Deutsche.

In the US, equity markets also saw some recovery. The S&P 500 ended the week up by 4.74%. Total flows into US ETPs last week were positive with $8.2bn of inflows, Deutsche reports.

After four weeks of risk-off trades, there was a reversal last week. Long-only equity ETPs had inflows of $11bn, while gold ETPs had outflows of $3.5bn.

"Another hint of potential change in risk appetite was perceived among US-focused sector ETPs grouped by business cycle sensitivity," says the Deutsche report.

Cyclical sectors had strong inflows last week with $1.3bn for global sectors and $941mn for domestic ones. However, defensive sectors remained positive.