European ETF Market flows reached a three-year record high in 2014. Net New Assets (NNA) for last year amounted to EUR 44.8 billion, nearly three times their 2013 level. Total Assets under Management were up 26% vs. the end of 2013, reaching EUR 363 billion, and including a significant market impact (+19.5%*). …..
Marlène Hassine – Head of ETF Research – Lyxor ETF
Lyxor Etf Barometer – January 2015
Both Equity and Fixed Income ETFs saw record high inflow levels in a more risk-on environment
Equity ETFs saw three-year record high inflows standing at EUR 26 billion, 82% above the previous 2013 record level. Investors favoured developed market exposure with more than EUR 21.9 billion in NNA . US exposures were the top pick, gathering more than EUR 16.3 billion; nearly three times their 2013 level. German equity ETFs continued to see record outflows of EUR 7.8 billion, 1.5 times their 2013 outflows. Emerging market ETFs saw rather limited inflows of EUR 872 million, mainly focused on Asian exposures with EUR 822 million in NNA. Global ETFs also recorded a positive trend with NNA of EUR 3.1 billion, 2.5 times their 2013 level. Interestingly, smart beta ETFs also saw record high inflows of EUR 2.6 billion, nearly four times their 2013 level.
Fixed income ETF inflows also hit a three-year record high of EUR 20.1 billion, 2.5 times their 2013 level. Investors mainly focused on developed markets too, with NNA of more than EUR 15.8 billion. Investment grade corporate bond ETFs were the main beneficiaries with NNA of EUR 8.2 billion compared to EUR 224 million in 2013. European govies saw sustained inflows of EUR 4.5 billion, 1.12 times their 2013 level.
Commodities continued to see outflows but at the more limited pace of EUR 1.3 billion compared to EUR 5.5 billion in 2013. Precious metal ETFs continued to see outflows of EUR 1.5 billion whereas broad exposures recovered slightly with inflows of EUR 260 million vs. outflows of EUR 820 million in 2013.
*MSCI ACWI NTR +19.5% between 31/12/13 and 31/12/14 in EUR.