EU Equities See Mixed but Positive Flows in September
Global Equities: US, EU, Chinese Equities Fall, Indian Equities Rise
Inflows
In the week ended September 18, EU (European Union) equities (EFA) saw total inflows of $24 million, compared to outflows of $309 million in the previous week. Investors deployed funds on higher trade surplus and industrial production. EU equities saw inflows in three out of the past five weeks.
Major asset managers that focus on EU equities include BlackRock (BLK), Goldman Sachs (GS), Deutsche Bank AG (DB), Morgan Stanley (MS), Vanguard, BNP Paribas (BNP), and UBS Group (UBS). The better-performing Eurozone region should attract higher funds to Europe-specific offerings.
The Eurozone is poised for higher growth among the major economies since it’s better positioned fundamentally to deliver on higher exports to the United States and other consumer-oriented economies.
ETFs are attracting investments
The following major ETFs are attracting investments:
Vanguard FTSE Developed Markets ETF (VEA)
iShares MSCI EAFE ETF (EFA)
iShares MSCI Germany ETF (EWG)
iShares MSCI EMU ETF (EZU)
iShares Europe ETF (IEV)
Vanguard FTSE Europe ETF (VGK)
Deutsche X-trackers MSCI Europe Hedged Equity ETF (DBEU)
Together, these funds attracted $515 million in the week ended September 18.
The major ETFs that saw outflows include the following:
WisdomTree Europe Hedged Equity ETF (HEDJ)
SPDR EURO STOXX 50 ETF (FEZ)
iShares MSCI United Kingdom ETF (EWU)
Together, these funds saw outflows of $70 million in the week ended September 18.
These ETFs are expected to continue to attract funds, especially while there’s an opportunity for long-term investors to enter with marginal losses. Mutual funds and ETF providers would benefit from strong performances by EU equities. With the certainty of Greece’s bailout plan, the performance of EU economies should attract long-term funds.
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