BlackRock has reported a sharp climb in money flowing into European equity ETPs.

The asset manager revealed European equity saw the largest inflow since January 2022, with $7.3bn flowing into the space, led by US-listed European equity exposure.

This highlights American investors' newfound proclivity to look beyond their domestic market, BlackRock noted.

Of the total inflow, just $2.1bn added to EMEA-listed European equity included sector allocations to financials and consumer staples. 

Revealed: BlackRock's three major themes

Much of the money coming into European assets came from sales of US equity ETPs, with $1.7bn in total outflows in January.

This was the first monthly net sell since April 2022.

Total allocations to global ETPs fell for the fourth consecutive month in January to $62.6bn, BlackRock said, largely due to reduced equity buying at the start of the month.

There was a broad tick up for bonds versus equity flows. The former climbed to $28.7bn from $28.3bn in December, while the latter fell from $43.1bn in December to $32.8bn in January.

Commodities flows turned positive in January with ETPs notching up a $0.9bn inflow, the first monthly inflow since April 2022.

On the sustainable investment side ETP flows remained in line with December 2022 levels, with $4.8bn added across the US and Europe.

Laura Cooper, senior macro strategist for iShares EMEA at BlackRock said: "Re-risking was the dominant theme that came through in January ETP flows, with investors balancing high quality credit positions with riskier allocations."

"Global equity buying slowed to start the year, due to investors drawing down US exposures to fund allocations abroad, for example.

"European equities gathered the largest inflow in a year while EM equity exposures extended the momentum seen through 2022.''