ETF Flow Report

April 2022 Flow Report

Commentary from the Desk:

For the month of April 2022, main market topics were about covid in China, the war in Ukraine and its implications on growth and inflation and central banks policies to control the latter. China’s growth has been impacted by covid lockdowns despite the monetary support of the PBOC. The war in Ukraine keeps going and drives commodity prices higher – since the start of the conflict natural gas and wheat added +84% and +50.45% respectively. The rouble is back to pre-war levels - around the 70 mark - as energy transactions are being settled in roubles helping Russia minimise the impacts of all the sanctions in place. The Fed reaffirmed its intention to raise rates by 50bps to fight against inflation. The US 10Y yield hit 3% for the first time since 2018. The ECB is also looking to raise rates in Q3 for the 1st time in a decade. The EURUSD declined, getting closer to parity at $1.05.

April Performance highlights

Equity Indices: NDX: -13.37%, SPX: -8.80%, MSCI WORLD: -8.80%, MSCI ACWI: -3.09%, STOXX 600 BANK: -3.22%, SX5E: -2.55%, FTSE100: +38%, STOXX 600 Healthcare: +1.41%,

Bonds: German 10Y yield: +39bps, US10Y Yield: +59.6bps

Commodities: Gold: -9.98%, Oil: +1.33%, Wheat: +5.36%

From a regional perspective, US equity indices were in favour while European equity as well as International DM indices were sold. On the fixed income side, US bonds were in strong demand while their EU peers were sold.

More specifically,

On Equity indices: the STOXX 600 HEALTHCARE was bought as well as the MSCI ACWI while the FTSE100, EURSTOXX 50, STOXX 600 BANKS were sold. The MSCI WORLD, the US tech NASDAQ and the S&P500 recorded a mixed activity.
On the Fixed income: The US Treasuries 1-3Y and 3-7Y were in favour. Mixed activity on the BLOOMBERG BARCLAYS US GOVT INFLATION LINKED as well as on the BLOOMBERG BARCLAYS EURO AGGREGATE. The FTSE MTS LOWEST RATED EUROZONE GOVT BOND was sold.

Sources: Bloomberg RFQE, Tradeweb, DRW - April 2022

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