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Amundi ETF : ETF Market Flows analysis Europe and World – May 2018

Inflows into the global ETF market continued their momentum in May, totalling more than 34 billion euros during the month and 178.5 billion since the start of the year….

Philip Philippides, Head of Amundi ETF & Indexing Sales for UK and Ireland


and in particular driven by the dynamism of the US market (+31 billion in May).

The global ETF market ended May with overall inflows of 34.4 billion euros. The US market made up the core of this amount (+31.1 billion).  In terms of asset classes, equities accounted for the majority of flows in May (+26.6 billion). Since the beginning of the year, the total inflows stand at 178.5 billion euros—of which 124.8 billion were in equity ETFs.

The volume of subscriptions in Europe also gathered pace, achieving more than 2 billion euros of inflows.

In Europe, investment flows into ETFs increased but remained relatively modest over the course of the month, at 2.2 billion euros, totalling 24.4 billion since the start of 2018. Equity ETFs gathered 2.6 billion in May. Conversely, fixed income ETFs saw withdrawals of almost 700 million euros.

International equity ETFs favoured by European investors

In May, markets continued to show signs of hesitation in the European context. Investors pulled out of European stocks (-2.2 billion from Eurozone equities in particular), in order to arbitrage in favour of US equities (+1.1 billion) and even more so for international equities (+4.6 billion). Inflows into French equities (+200 million) were, however, a notable exception.

Against the picture that had begun to emerge since the start of the year, emerging market ETFs (-481 million) were also rather neglected by investors. In sectoral and thematic terms, financial stocks registered the largest outflows (-946 million), while European investors showed a marked interest in the low carbon theme (+279 million).

Withdrawals from government bonds

In Europe, fixed income ETFs were also affected by uncertainty. In May, investors turned away from both corporate (-86 million) and particularly sovereign bonds (-809 millions), neither of which have been working effectively as a safe haven. Emerging markets government debt also continued to experience withdrawals (-309 million). By contrast, US bonds indexed to inflation garnered significant interest from investors (+292 million). Their enthusiasm for floating rate bonds was also sustained during May, with net positive flows of more than one billion euros since the beginning of the year.

Source: ETFWorld