Lyxor ETF Money Monitor: August was marked by further compression in credit spreads. Meanwhile, global equities lacked direction and convictions.
Vincent Denoiseux, Head of ETF Research and Solutions at Lyxor Asset Management
– Flows were more limited across asset classes compared to previous months. Fixed income and equities exposures benefitted from positive flows nonetheless.
– ETFs have gathered €8.7bn in August 2020. Fixed Income and Equity ETFs accumulated €4.4bn and €4.0bn respectively.
– ESG ETFs continued their strong trend and gathered €2.6 bn.
– Fixed Income funds and ETFs: fixed income funds and ETFs gathered a combined €25.2bn in net new assets with €20.8bn into open-end funds and €4.4bn into ETFs.
– Equity fund and ETFs: equity ETFs and openend funds have enjoyed €15.2bn of net new assets, with 11.2bn into funds and €4.0bn into ETFs. World Ecology and Technology took the lion share of equity sector flows, gathering a combined €4.4bn net new assets.
– Investors remained cautions on their EM allocation, favouring FI at the expense of most EM equity markets.
Flows summary for the European ETF market in August 2020.
What happened last month?
– Equity ETFs gathered €4.0bn in net new assets.
– Fixed Income ETFs gathered €4.4bn over the same period.
– Another strong month for ESG ETFs with €2.6bn in net new assets.