Flows into European equity continue……
Deutsche Bank : European Monthly ETF Market Review for March 2017
Data in this report is as of 31 March 2017.
European ETP Monthly Highlights (Assets & Flows):
Assets: European ETPs AUM increased by €15bn on MoM basis and ended the month at €594bn
Flows: European domiciled ETPs registered strong inﬂows of +€10.9bn for the third consecutive month in 2017. Equity ETFs were dominant where there were inﬂows of +€6.6bn followed by Fixed Income ETFs and Commodity ETPs with inﬂows of +€2.9bn and +€1.3bn respectively.
New Product Launches – 20 new products European ETP market witnessed 20 new launches in March which includes Leverage/Inverse, Sectors and SRI based products.
Investment Themes for the Month
European equities drew +€0.8bn of inﬂows primarily into broad composites. EM also saw +€1bn of inﬂows. Country wise, US (+€1.9bn) beneﬁted while Australia saw outﬂows (-€0.5bn).
The Smart Beta segment saw a modest increase (+€0.2bn) where Factor ETFs activity were relatively muted. In other segments, Mid caps (+ €388mn), IT sector (primarily Robotics & Automations, +€299mn) also had notable gains. Currency hedged ETFs saw +€1.3bn inﬂows, primarily into CHF, EUR & GBP hedged products.
Corporates & Sovereigns commanded inﬂows in the Fixed Income segment (+€2.9bn). Broad Bonds saw the highest assets growth.
Gold based ETPs (+€0.6bn) contributed most to overall commodity ﬂows (+€1.3bn).
US listed ETFs with exposure to Europe registered monthly inﬂows of + $1.9bn.
Turnover: MoM turnover increased by 16% The total turnover activity into European ETPs increased by 16% (€75.9bn) compared to the previous month’s total (€65.5bn).