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Fixed income ETPs saw inflows of $32.5 billion in July.

After only receiving $3.2 billion in June, fixed income saw a $32.5 billion increase in inflows for global ETPs in July.

The recovery was attributed to a pick-up in credit buying, which accounted for just under half of fixed income inflows ($13.8 billion), according to BlackRock's most recent global ETP flow report.


High yield ETPs saw inflows of $3.9 billion while investment grade ETPs saw inflows of $9.9 billion.


Global ETP inflows totaled $44.2 billion in total.


Commodity ETPs, meanwhile, saw their largest monthly outflows ever with $11.2 billion sold.


For commodity ETPs, July marks the third straight month of selling, surpassing the combined outflows of May and June ($9.7 billion).



BlackRock blamed the decline in US equity purchases, which fell from $25.9 billion in June to $12.4 billion, for the drop in equity ETP inflows to $17 billion.


While European equity ETPs saw outflows of $3.9 billion, emerging market equity ETP flows remained unchanged.


Sector selectivity, according to BlackRock, indicated a "defensive tilt" in equity allocations. The two most popular industries this year are technology and healthcare, with monthly inflows for July totaling $1.2 billion and $2.6 billion, respectively.


On the other hand, outflows in the sectors of energy, industrials, and materials totaled $2.7 billion, $400 million, and $1.4 billion, respectively, for the month.


In contrast, inflows into sustainable ETPs increased significantly during the month, from $2.3 billion in June to a total of $9.6 billion.


The majority of these inflows ($9.2 billion) came from ETPS, which is listed in the EMEA region, while the US share was only $300 million.


The last ten days of the month saw a series of large trades totaling almost $6 billion, which contributed significantly to the fact that July made up one-third of the year's total inflows to sustainable ETPs.

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