Lyxor ETF Money Monitor: In the first Money Monitor of 2021, we look back on December flows and 2020’s key numbers.
Vincent Denoiseux, Head of ETF Research and Solutions at Lyxor Asset Management
The second half of this report contains a comprehensive analysis of flows in European open-ended funds and ETFs.
– 2020 ended on a very strong note, with more than €57bn invested in Equity funds and ETFs in December, while Fixed Income gathered €31.6bn. Vaccine rollouts added some positive momentum, and Brexit uncertainties finally started to unwind, with a deal agreed and passed before year end.
– ETF flows: ETFs gathered €23.1bn during December. Fixed Income and Equity ETFs accumulated €4.5bn and €18.1bn respectively.
– ETFs gathered a solid €89.3bn across 2020, their third-largest annual flow to date.
– ESG ETFs continue to set new records in asset gathering with +€9.7bn in December. Across 2020, ESG ETFs had inflows of €45.5bn.
– Smart Beta ETFs gathered €1.0bn, in another good month for value and equal-weighted ETFs.
– Fixed Income funds and ETFs gathered a combined €31.6bn in net new assets (mostly into Global and EM), with €27.1bn into open-end funds and €4.5bn into ETFs.
– Equity funds and ETFs enjoyed €57.0bn of net new assets, with 38.9bn into funds and €18.1bn into ETFs. US and China were in demand whilst UK suffered from the Brexit uncertainty.
Flows summary for the European ETF market in December 2020.
What happened last month?
– Equity ETFs gathered €18.1bn in net new assets.
– Fixed Income ETFs gathered €4.5bn over the same period.
– Another record month for ESG ETFs with €9.7bn in net new assets.