Last week saw large cash inflows into telecommunications sector ETFs, according to the ETF Landscape DJ Stoxx 600 Sector ETF Net Flows Report from Blackrock (formerly Barclays Global Investors).

Inflows to ETFs tracking the 19 DJ Stoxx supersectors totalled US$116 million during the week ending 4 December, according to Blackrock. Of this total, US$110 million was allocated to telecommunications.

The European ETF trading report by Labranche Structured Products Europe, published yesterday on IndexUniverse.eu, also mentioned investor interest in telecoms trackers, while also pointing out that the sector has rallied 8% in price over the last three weeks.

ETF issuers Lyxor and Source were the major beneficiaries, with US$67 million and US$33 million of inflows, respectively, to their telecoms sector ETFs.

This weekly inflow means that telecoms sector ETFs are now the largest net recipients of investor funds in the year to date, according to Blackrock, with US$551 million of net purchases, followed by basic resources (US$458 million), banks (US$334 million), utilities (US$319 million) and oil and gas (US$298 million).