Refinitiv: After the markets bounced back from the trough caused by the global lockdown during the coronavirus pandemic, April was another positive month for the European ETF industry since ETF promoters enjoyed inflows …
By Detlef Glow, Lipper’s head of EMEA research at Refinitiv
The combination of above average inflows and the positive performance of underlying markets led to an increase in assets under management from €719.1 bn as of March 31, 2020, to €777.9 bn at the end of April.
The increase of €58.8 bn for April was driven by the performance of the underlying markets (+€50.1 bn), while the net inflows contributed €8.7 bn to the increase in assets.
It was not surprising equity funds (€509.5 bn) held the majority of assets, followed by bond funds (€234.2 bn), commodity products (€21.7 bn), alternative UCITS products (€6.0 bn), money market funds (€4.8 bn), mixed-assets funds (€1.6 bn), and “other” funds (€0.2 bn).
Graph 1: Market Share, Assets Under Management in the European ETF Segment by Asset Type, April 30, 2020
Source: Refinitiv Lipper
Fund Flows by Asset Type
The European ETF industry enjoyed estimated net inflows for April (+€8.7 bn) which were above the rolling 12-month average.
These flows brought that average up to €6.2 bn from €5.8 bn in March 2020.
The inflows in ETFs were driven by bond funds (+€8.1 bn), followed by equity ETFs (+€0.5 bn), money market ETFs (+€0.4 bn), alternative UCITS ETFs (+€0.4 bn), and mixed-assets ETFs (+€0.003 bn), while “other” ETFs (+€0.02 bn) and commodities ETFs (-€0.7 bn) faced outflows.
This flow pattern drove the estimated overall net flows to positive €8.7 bn for the month and negative €1.4 bn year to date.