Investors have been moving back into German exchange-traded funds (ETFs) over the past two months ahead of the German Federal Elections on 24 September, in a sign of growing confidence in Chancellor Angela Merkel's lead over her rivals.
According to data from Lyxor Asset Management and Bloomberg, German equity ETFs saw inflows of €385m in August and €593m in July; their first monthly inflows since March. Fears of a rise in populism across Europe have fallen back since the beginning of the year, after far-right leader Geert Wilders and the National Front's Marine Le Pen were defeated in their respective elections in the Netherlands and France. Investor jitters Adam Laird, head of ETF strategy, Northern Europe at Lyxor, said: "Elections have been a source of fear for investors. Neither Brexit nor Trump were predicted...
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