27
Thu, Jul

ETP Analysis
Typography

YTD European ETF market flows as of May 2017 amount to over +44 bn €...


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Fannie Wurtz, Managing Director of Amundi ETF, Indexing & Smart Beta


split between:

Equity ETFs: +29.2 bn € inflows YTD

Fixed income ETFs: +13.1 bn € inflows YTD

Commodity ETFs: +1.8 bn € inflows YTD

Emerging market ETFs took the lead in May with +1.4 bn € collected, but European Equity ETFs are at the top of the list since the beginning of the year with more than +4.5 bn € inflows YTD. The trend observed since early 2017 was confirmed in May, with over +1.3 bn € inflows towards European equity ETFs.

The very good start of 2017 in the Eurozone and the political risk dissipating in Europe indicate the comeback of Europe in investors allocation strategies. The recovery is strengthening. Sentiment is at its strongest level since 2011, indicating an improvement in the economy with monetary conditions remaining accommodative despite the rise in interest rates. [1]

Economic indicators which continue to surprise on the upside (growth forecasts to 1.6% for 2017 and 1.5% for 2018) 1 combined with Emmanuel Macron’s election have sent a positive message to investors.

However, the political environment and the next elections in Europe remain decisive instability factors: this uncertainty was demonstrated by some outflows from specific countries like Germany and Italy, with respectively -547 million € and -238 million € outflows YTD from the ETFs exposed to these counties.

Within the Smart Beta universe, Value factor regained the top spot in May, with +841 million € inflows MTD and around +2.2 billion € YTD. Meanwhile Size factor continues to attract flows with +658 million € collected in May.

In the Fixed Income field, Govies and corporate ETFs are globally balanced in terms of flows since the beginning of the year (+5.2 bn et +5.3 bn € respectively). ETFs exposed to Emerging market govies top the government debt category with more than 5.6 bn € inflows YTD, more than 1 bn € in the month of May.

On the credit side, Eurozone corporate ETFs collected most of the flows during May with +508 million € inflows but Floating Rate notes lead the YTD flows with +2.8 bn € inflows followed by US Corporates (+1.8 bn € YTD).

[1] Source : Amundi Strategy

Source: ETFWorld.co.uk

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