Refinitiv figures show EUR17.4bn of net inflows into European ETFs over first half of 2020

Flows

Refinitive Lipper’s ETF figures show that the promoters of ETFs in Europe experienced net inflows of EUR17.4 billion over the first half of 2020.

The firm writes that the assets under management in the European ETF industry (EUR830.0 billion) have decreased over the course of 2020 so far. Bond ETFs (+EUR16.4 billion) posted the highest net inflows in the European ETF industry for the first half of 2020.

The best-selling Lipper global classification for June was Equity Global (+EUR4.9 billion), followed by Bond Global Corporates USD (+EUR4.9 billion) and Bond USD (+EUR3.3 billion).

iShares was the best-selling ETF promoter in Europe for the first half of 2020 (+EUR13.4 billion), ahead of Vanguard Group (+EUR3.9 billion) and Xtrackers (+EUR2.6 billion). The Average Total Expense Ratio (TER) of ETFs in Europe fell one basis point (bp) to 0.33 per cent, and Optimized Replication was the preferred index replication method in Europe. 

Detlef Glow, Lipper Head of EMEA Research at Refinitiv, says: “ETFs enjoyed inflows over the first six months of 2020 even as the economic and political developments over the course of the first half of the year were distinguished by the outbreak of Covid-19 and the resulting lockdowns of the leading economies. That said, March 2020 was one of the few months during which ETFs faced outflows as European investors switched to risk-off mode and respectively sold risky assets from their portfolios.

“Even as the economic outcome from the lockdowns is still unclear, investors returned to risky assets as governments and central banks started to stimulate the economies around the globe. This stimulus led to increasing stock markets and falling interest rates. That said, the inflows in ETFs could not offset the negative performance of underlying markets, which led to a decrease in assets under management from EUR870.0 billion as of 31 December, 2019, to EUR830.0 billion at the end of June 2020. As stated above, the decrease of EUR40.0 billion for the first half of 2020 was driven by the negative performance of the underlying markets (-EUR57.4 billion), while the net inflows contributed EUR17.4 billion to the assets under management.”

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Beverly Chandler
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