European ETF market flows rebounded slightly in May.....
By Marlène Hassine Konqui, Head of ETF Research and Kristo Durbaku, ETF Research Analyst
Net New Assets (NNA) rose to €1.1bn from the €668m we saw in April. Sentiment reversed again, with equity ETFs attracting most of the inflows (€1.5bn) and fixed income ETFs suffering their worst month since December 2016 (-€765m). Overall, flows remain strong but they are behind last year’s record levels
Equity ETFs enjoyed a significant rebound in May after their travails of April. US ETFs attracted just under €700m but global equities were the standout performers by far after they drew in just under €3.4bn – their best month ever.
In contrast, Eurozone equities suffered outflows of €3.3bn after political and economic concerns mounted. Emerging markets also lost some of their lustre and recorded their first negative month since January last year (€-476m).
Fixed income ETFs enjoyed a far less positive month in May, driven by a collapse in flows into developed market government bonds (€-560m), led by US Treasuries (€-321m).
European government bond outflows weren’t far behind. Meanwhile, emerging market government bonds recorded their third successive month of outflows.
Inflation-linked bonds were one of the few fixed income bright spots after inflows of €342m reinforced April’s rebound.