ETFs gathered EUR8.1bn in April amid hopes of economic recovery

ETFs attracted inflows of EUR8.1 billion during April as market sentiment started to recover following the rout triggered by the Covid-19 pandemic, according to new research released by Lyxor.

Flows into riskier assets started to materialise over the month including EUR19.1 billion into equities. Investors maintained a cautious bias however, with money market funds and ETFs gathering most inflows and ESG ETFs continuing their strong performance, gathering EUR1.4 billion.

Fixed income funds and ETFs gathered a combined EUR30.6 billion of net new assets with EUR22.6 billion into open-ended funds and EUR8.0 billion into ETFs. Equity ETFs and open-ended funds meanwhile, enjoyed EUR19.1 billion of net new assets, with EUR18.8 billion into funds and EUR0.3 billion into ETFs. 

April was a very strong month, With 

World sector funds and ETFs had a strong month gathering EUR9.5 billion during April. Flows went largely to funds with exposure to the Technology, Healthcare and Energy sectors. While the cumulative monthly flows for World sectors are already impressive, it is also worth highlighting that these sectors enjoyed daily inflows throughout April.

ESG ETFs continued their solid flow trend during the month gathering EUR1.4 billion, while only Smart Beta ETFs recorded notable further outflows with -EUR1.4 billion.