Highest inflows into Fixed Income ETFs since July 2016…
Deutsche Bank : European Monthly ETF Market Review for June 2017
Data in this report is as of 30 June 2017
European ETP Monthly Highlights (Assets & Flows):
■ Assets : European ETPs AUM decreased by €1.5bn on MoM basis and ended the month at €605bn.
■ Flows : European-domiciled ETPs registered inflows of +€8.7bn during last month where year-to-date flows have reached +€57bn.
New Product Launches – 6 New products
European market witnessed 6 new products launched in June which were all Equity ETFs.
Investment Themes for the Month
■ Marginal outflows from European equity (standard indices) following negative market returns in June (-€95mn). EM saw significant inflows (+ €1.1bn). Country wise, US (+€635mn), Japan (+€391mn) benefited while Germany saw outflows (-€763mn).
■ Smart Beta segment recorded inflows of +€1bn. Factor (+€505mn), Thematic (+€198mn), Dividend (+€186mn) and ESG (+€146mn) ETFs were the segments that benefitted. Factor flows were distributed across Low Vol, Value and Multi-Factor strategies.
■ Sector-wise, Industrials (+€210mn) benefitted while Financials (-€261mn) and Healthcare (-€154mn) saw redemptions.
■ Currency Hedged (+€560mn) equity ETFs had a strong showing which was largely centered around EUR hedged products.
■ Robust Fixed Income inflows (+€4.2bn) mainly into EM Bonds and EUR Corporates.
■ Gold (+€264mn) and Crude Oil (+€282mn) contributed most of the overallcommodity flows (+€431mn).
■ US listed ETFs with exposure to European equities drew +$3.9bn.
Turnover: MoM turnover decreased by 10%
The total turnover activity into European ETPs increased by 10% (€68.5bn) compared to the previous month’s total (€76.3bn).