European equity demand returns…
Deutsche Bank : European Monthly ETF Market Review forSeptember 2017
Data in this report is as of 29th September 2017.
European ETP Monthly Highlights (Assets, Flows & Launches):
Assets & Flows: Assets rose by €18bn MoM (Total Assets €630bn), Net inﬂows +€6.7bn (YTD +€75bn)
20 New Launches: 18 Equity and 2 Fixed Income ETFs.
Investment Themes for the Month Equities (+€6.3bn) – Winners: Europe +€2.9bn, EM +€1.4bn, US +€1bn, Japan +€747mn & Global DM +€239mn; Smart Beta covering all regions saw +€1.1bn inﬂows. Regional ﬂow drivers:
Europe (+€2.9bn): Regional (EStoxx 50 & Stoxx 600) and Sector (Banks) ETFs were the major contributors. ESG ETFs also had notable inﬂows.
Other regions (+€3.5bn): 1) EM inﬂows (MSCI EM and MSCI EM IMI) 2) US inﬂows (S&P 500). 3) Japan inﬂows (MSCI Japan) 4) Global DM inﬂows (MSCI World & MSCI World Momentum)
Fixed Income (+€0.7bn) – Mixed ﬂow trends across regions; Winners: EM + €745mn, US +€202mn; Losers: Europe -€666mn, Global -€9mn. Regional ﬂow drivers:
Europe (-€0.7bn): Outﬂows from Sovereign ETFs partially oﬀset by inﬂows into HY Corporate ETFs.
Other regions (+€0.9bn): 1) EM inﬂows (almost entirely Sovereign) 2) US inﬂows (across multiple segments) 3) Global DM mild outﬂows (HY Corp inﬂows oﬀset by IG Corps)
Commodities (-€94mn) – Inﬂows in Broad Commodity (+€263mn), while Gold and Crude Oil based ETPs saw redemptions (-€178mn & -€132mn respectively).
Turnover: MoM turnover decreased by 10% The total turnover activity into European ETPs decreased by 10% where total turnover observed was (€58bn) compared to the last month’s total (€53bn).