Refinitiv: October was another positive month for the European ETF industry, as the promoters of ETFs in Europe enjoyed above average inflows in October. …
By Detlef Glow, Lipper’s head of EMEA research at Refinitiv
These led, in combination with the positive performance of the underlying markets, to an increase in assets under management in the European ETF industry from €795.6 bn as of September 30, 2019, to a new record high of €809.2 bn at the end of October.
The increase of €13.6 bn for October was driven by estimated net inflows (+€11.1 bn), while the performance of the underlying markets contributed €2.6 bn to the increase in assets under management.
It was not surprising equity funds (€547.1 bn) held the majority of assets, followed by bond funds (€228.1 bn), commodity products (€21.9 bn), alternative UCITS products (€6.7 bn), money market funds (€3.2 bn), mixed-assets funds (€2.1 bn), and “other” funds (€0.1 bn).
Graph 1: Market Share, Assets Under Management in the European ETF Segment by Asset Type, October 31, 2019
Source: Lipper from Refinitiv
Fund Flows by Asset Type
The European ETF industry enjoyed estimated net inflows for October (+€11.1 bn) which were way above the rolling 12-month average.
They brought that average up to €5.5 bn from €4.7 bn in September 2019.
The inflows in ETFs were driven by equity funds (+€7.0 bn), followed by bond ETFs (+€4.3 bn), commodity ETFs (+€0.3 bn), and mixed-assets ETFs (+€0.1 bn).
On the other side of the spectrum, money market ETFs (-€0.5 bn) faced the highest estimated outflows for the month, bettered by alternative UCITS ETFs (-€0.01 bn) and “other” ETFs (-€0.01 bn).
This flow pattern drove the overall net flows to €73.3 bn for 2019.