Lipper team reports net inflows into European ETFs in October

Flows

The European ETF market report from the Lipper team at Refinitiv for October reveals that ETF promoters in Europe experienced estimated net inflows of EUR4.8 billion for October. 

Assets under management in the European ETF industry (EUR874.3 billion) decreased during October, according to Lipper, with Equity ETFs (+EUR2.3 billion) posting the highest estimated net inflows in the European ETF industry for October. 

The best-selling Lipper global classification for October was Equity Global (+EUR1.3 billion), followed by Bond Emerging Markets Global in Hard Currencies (+EUR0.8 billion) and Bond CNY (+EUR0.8 billion). 

Xtrackers was the best-selling ETF promoter in Europe for October (+EUR2.5 billion), ahead of iShares (+EUR0.7 billion) and SPDR (+EUR0.5 billion), according to Lipper.

The 10 best-selling funds gathered total net inflows of EUR3.3 billion for October. The best-selling ETF for October, Xtrackers MSCI USA Information Tech UCITS ETF 1D, accounted for net inflows of EUR0.6 billion. 

Detlef Glow, Lipper Head of EMEA Research at Refinitiv, says: “October 2020 was another positive month for the European ETF industry since promoters enjoyed inflows, while the market environment turned negative as the second wave of the COVID-19 pandemic hit major markets in Europe and investors feared a second coronavirus lockdown-induced economic downturn.  

“The negative performance of the underlying markets led to decreasing assets under management (from EUR882.6 billion as of September 30, 2020, to EUR874.3 billion at the end of October) despite net inflows. This means the decrease of EUR8.3 billion for October was driven by the performance of the underlying markets (-EUR13.1 billion), while net sales contributed inflows of EUR4.8 billion to assets under management. It was not surprising equity funds (EUR563.8 billion) held the majority of assets, followed by bond funds (EUR262.4 billion), commodities products (EUR36.9 billion), alternative UCITS products (EUR6.3 billion), money market funds (EUR3.1 billion), mixed-assets funds (EUR1.6 billion), and ‘other’ funds (EUR0.2 billion).”

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Beverly Chandler
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