Vanguard: “Across Europe, the industry continued to see inflows into European domiciled ETFs. Fixed income were the primary driver once again, followed by commodities while equities suffered another week of outflows…
Andreas Zingg, Head of Switzerland and Liechtenstein
In equities, investors allocated primarily into global, German and APAC ex Japan exposures.
In fixed income, corporate bonds saw another week of large inflows, across USD- and EUR-denominated issuances, as history tend to repeat itself, week after week.
“At Vanguard, our UCITS ETF lineup remains in positive flow territory over April, primarily driven by equity exposures. Within equities, our clients added investments across FTSE 100, All-World and European equities.”
“With Covid-19 infection curves flattening in Europe and in some cases turning, it’s not unreasonable to suppose we might be near the end of the beginning of this crisis.
However, there is still a long way ahead before we get to the beginning of the end, which is something to bear in mind when considering how global risk assets have bounced back in recent weeks, recovering some 30% to 40% of their Covid-19 losses.
The Euro Stoxx 50 index is still down about 27% from its February peak. But shares globally are up by about a third since their trough and the S&P 500 is now down only 17.5% in euro terms, implying that the Covid-19 bear market may have already ended. But has it really?”