European ETF Market flows slowed again in April….
By Marlène Hassine Konqui, Head of ETF Research and Kristo Durbaku, ETF Research Analyst
Net New Assets (NNA) fell to €660m from the €1.3bn we saw in March.
In a reversal from March, fixed income ETFs attracted most of the inflows (€1.4bn) while equity ETFs recorded their first negative month since May 2016 (-€1.5bn).
Commodities enjoyed a strong month (€677m) as the reflation trade took hold but smart beta remained out of favor at -€587m.
Equity ETFs suffered significant outflows in April, but US ETFs still enjoyed positive, albeit slower, inflows. Japan and Global markets both suffered outflows but Eurozone equity ETFs bore the brunt of the sell-off at -€2.9bn. There were three key drivers behind these outflows – euro appreciation against the dollar, political uncertainty and stuttering economic activity data.
Fixed income ETFs enjoyed a much more positive month, driven by developed market (notably European) government bonds. Their emerging counterparts suffered outflows however. Inflation-linked bond flows also turned positive in another sign inflation and the ageing of the cycle were front of mind.