Lyxor ETF Money Monitor: ETF flows: ETFs gathered €3.4bn through February 2020. Flows into Fixed Income remained strong (€2.4bn) while Equity ETFs gained €1.0bn…….
Vincent Denoiseux, Head of ETF Research and Solutions at Lyxor Asset Management
ETFs flows endured through tough market conditions
Markets became increasingly volatile over the last two weeks of February 2020, panicked by the spread of Covid-19 across the globe.
Equities had net outflows over the period in many regions, coming from both active and passive investors.
Smart Beta ETFs recorded limited outflows (€0.2bn).
Fixed Income funds and ETFs gathered a combined €28.4bn in net new assets with €26.1bn in open-ended funds and €2.4bn in ETFs.
Equity funds and ETFs gained €1.8bn of net new assets, with €0.8bn in funds and €1.0bn in ETFs.
ESG ETFs continued their strong trend and gathered €3.5bn in a record month
Chart of the month: Markets became increasingly volatile in the final fortnight of February, panicked by the spread of Covid-19. Equities suffered net outflows over the period in many regions, coming from both active and passive investors (see chart below).
Europe-domiciled ETFs experienced significant outflows (€-5.6bn) between 24–28 February, with €-4.1bn and €-1.4bn flowing out of equity and fixed income ETFs respectively.
Many ETFs had daily trade volumes several times higher than their historical average without any liquidity concerns. Average daily volumes for Lyxor’s ETF range over the period were greater than €1bn. Investors have been able to buy and sell significant sizes in good conditions.
Global equities suffered outflows during February’s Covid-19 crises
Net New Assets for Europe-domiciled active and passive equity managers
Source: Morningstar, Lyxor International Asset Management. Data as at 04/03/2020.