ETFs still “sucking flows away” from traditional funds

ETFs are still “sucking flows away” from traditional mutual funds, Lipper says in its latest Fund Flash.

Lipper attributes a quarter of equity fund sales in October to ETFs. ETF giants BlackRock and Deutsche Bank saw particular benefits.

European equity funds, including small caps, saw £1.1bn of inflows, having suffered outflows of £10.9bn over the previous nine months.

Total net fund sales reached £17.2bn. Excluding money market funds, they hit a six month high of £26.1bn.

For the year to date, net sales now stand at £211bn excluding money market vehicles, above the level reached for the whole of last year and close to the 2006 level of £228.2bn.

Emerging market funds attracted almost half of total inflows as the popularity of global emerging markets, Latin America and Brazil, Russia, India and China rose further.