Global ETPs have enjoyed strong inflows in March, with $62.1bn added to the space, compared to the $23.3bn added in February.

BlackRock's Global ETP Flows report found Q1 ETP net inflows totalled $148.5bn as sectors across the board recorded strong increases.

Fixed income flows reached $38bn last month, their highest level since October, while equity flows jumped to $24.3b more than doubling the $9.4bn raised in February.

In fixed income, defensive positions provided the biggest boost for the sector, with rates ETPs recording their best month on record as $33.2bn flowed into the asset class.

Within these, $28.6bn went to US Treasury exposure, while $3.4bn flowed to European rates exposures, including $300m into UK gilt exposure. Among European rates, more than $2bn was allocated to exposures with up to five years of duration.

Investment grade flows turned positive at $400m, while high yield continued to see outflow, although these tempered to $1.3bn.

BlackRock also noted that within EMEA-listed ETPs, a divergence between euro credit and USD credit continued.


The bounce in equity inflows came from across regions, as US equity flows reached positive territory for the first time since December ($6.3bn).

Global emerging market equity flows also increased, to $6.6bn, driven largely by single country buying ($5bn) as investors bought APAC-listed China and India ETPs.

However, European equity inflows fell, reaching their lowest in three months at $1.6bn.

By sectors, tech recorded the strongest performance ($3.2bn), of which $2bn flowed into US tech, which enjoyed its best month since October 2022.

Healthcare flows saw their fourth consecutive negative month, with $200m outflows, although BlackRock noted this was "skewed by outflows from US healthcare exposures".

Energy also recorded a fourth consecutive month of outflows, losing net $1.8bn, while financials achieved its second consecutive month of inflows at $1.6bn.

Financials continued to see inflows, up $1.6bn, while energy remained unpopular in March, with $1.8bn of outflows in its fourth consecutive month of selling.

Gold ETPs recorded their largest inflows since April 2022, with $1.7bn entering the products, a welcome return for the sector following a cumulative net $25.5bn outflow since that previous high.

Sustainable flows

Sustainable flows fell into negative territory in March, losing $3.7bn in outflows, despite strong performance in recent months.

EMEA-listed ETPs saw flows fall to $1.9bn in March from $4.1bn in February, with equity ETPs composing the majority of inflows ($1.5bn).

Flows into EMEA-listed ETPs decreased from $4.1bn in February to $1.9bn in March, while in EMEA, equity ETPs accounted for the majority of inflows ($1.5bn).

Sustainable fixed income flows in EMEA totalled just $392m, compared to a 12-month average of $1.7bn, and saw the majority of its flows go to eurozone climate strategies ($180m).

US-listed sustainable ETPs recorded sizeable net outflows, losing $5.6bn, with equity exposures composing all of the loss ($1.7bn).

Karim Chedid, EMEA head of iShares investment strategy at BlackRock, said: "While flows to ETPs increase across the board in March, there was a clear defensive shift in sector and commodity flows, including gold.

"March recorded the highest month for rates on record, as fixed income flows rose to $38bn. In EMEA listed ETPs, the divergence between euro credit and USD credit continued, with investors continuing to favour the former."