Refinitiv: The promoters of ETFs in Europe enjoyed net inflows for June. These led, in combination with a positive performance of the underlying markets, to an increase in the assets under management in the European ETF industry….
By Detlef Glow, Lipper’s head of EMEA research at Refinitiv
In more detail, the assets under management in the European ETF industry increased from €721.4 bn as of May 31, 2019, to €746.7 bn at the end of June.
The increase of €25.4 bn for June was driven by the performance of the underlying markets (+€22.5 bn), while net sales contributed inflows of €2.9 bn to assets under management in the European ETF segment.
With regard to the overall number of products, it was not surprising equity funds (€510.8 bn) held the majority of the assets, followed by bond funds (€203.9 bn), commodity products (€19.3 bn), alternative UCITS products (€6.4 bn), money market funds (€4.5 bn), mixed-asset funds (€1.8 bn), and “other” funds (€0.2 bn).
It is noteworthy that the shift in assets under management from “other” ETFs towards alternative UCITS ETFs has been caused by the launch of an extended Lipper Global Classification scheme and not by the transactions of investors.
Graph 1: Market Share, Assets Under Management in the European ETF Segment by Asset Type, June 30, 2019
Source: Lipper from Refinitiv
Fund Flows by Asset Type
The level of estimated net inflows into ETFs stood below average for June.
In more detail, the net inflows in the European ETF industry for June (+€2.9 bn) were below the monthly rolling 12-month average (+€4.6 bn).
The flows into ETFs were a sign that investors had returned to the markets despite an increased volatility in stock markets globally.
That said, it was surprising bond ETFs were again the asset type with the highest net inflows (+€6.0 bn), followed by money market ETFs (+€0.9 bn) and mixed-asset ETFs (+€0.05 bn).
Conversely, equity ETFs (-€3.5 bn) faced the highest outflows in the European ETF segment, bettered by alternative UCITS ETFs (-€0.3 bn), commodity ETFs (-€0.1 bn), and “other” ETFs (-€0.03 bn).
This flow pattern drove the overall net flows to +€36.1 bn for 2019.