ZURICH | UBS analysts | ETF flows continue to reward positive economic data from the US with spectacular equity inflows for the second consecutive month. Europe was once again a laggard in both economic terms and in flows: Germany, Spain, Italy, and France, saw net outflows in December due to a combination of growth, Grexit and deflation concerns.
ZURICH | UBS analysts | The US continues to come top of the class in economic terms which, combined with the effect of central bank policy divergence, is clearly driving global flows. Country- specific equity ETF flows in October show that the US saw by far the largest inflows last month followed by the UK, Korea and Australia. Europe was once again a laggard in both economic terms and in flows: Germany, Spain, Italy, and Sweden, saw net outflows in October due to these growth concerns. Within BRIC, China saw the largest outflow since April last year as growth concerns continue to persist but Brazil, India and Mexico saw inflows.