India and artificial intelligence fuelled demand for exchange traded funds in July, even as Europe fell out of favour.
The flows data suggest investors appear to be focusing on what are widely perceived to be two long-term engines of the global economy: AI is seen by many as a breakthrough technology destined to percolate across sectors, while India is hotly tipped to take the baton from China as the world’s fastest-growing large economy in the decades to come.
“India is becoming a more sizeable growth engine for emerging markets,” said Karim Chedid, head of investment strategy for BlackRock’s iShares arm in the Europe, Middle East and Africa region.