Sandy and US uncertainty hit ETF inflows

Uncertainty over the outcome of the US presidential election, the fiscal cliff and Hurricane Sandy saw inflows into global ETFs slow sharply in October, according to consultancy ETFGI.

Some $13.5bn of net new assets flowed into global Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs), compared to $40bn of net new inflows in September 2012, according to ETFGI. Inflows into US listed ETFs and ETPs, which usually account for the majority of net new assets (NNA), amounted to just $2.7bn, or 20% of NNA, in October. Globally, ETFs and ETPs providing exposure to North America equities also suffered from these concerns as investors withdrew a net $10.1bn. Managing Partner at ETFGI, Deborah Fuhr said: "The source and composition of the fund flows in October...