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Refinitiv : European ETF Market, H1 2020

Refinitiv: ETFs enjoyed inflows over the first six months of 2020 even as the economic and political developments over the course of the first half of the year were distinguished by the outbreak of COVID-19 and the resulting lockdowns of the leading economies…

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By Detlef Glow, Lipper’s head of EMEA research at Refinitiv


That said, March 2020 was one of the few months during which ETFs faced outflows as European investors switched to risk-off mode and respectively sold risky assets from their portfolios.

Even as the economic outcome from the lockdowns is still unclear, investors returned to risky assets as governments and central banks started to stimulate the economies around the globe. This stimulus led to increasing stock markets and falling interest rates.

That said, the inflows in ETFs could not offset the negative performance of underlying markets, which led to a decrease in assets under management from €870.0 bn as of December 31, 2019, to €830.0 bn at the end of June 2020.

As stated above, the decrease of €40.0 bn for the first half of 2020 was driven by the negative performance of the underlying markets (-€57.4 bn), while the net inflows contributed €17.4 bn to the assets under management.

Graph 1: Assets Under Management in the European ETF Segment,

December 31, 2000 – June 30, 2020 (Euro Millions)

Review of the European ETF Industry - H1-2020

Source: Refinitiv Lipper

With regard to the number of funds and the history of the European ETF market, it was not surprising equity funds (€543.9 bn) held the majority of assets, followed by bond funds (€250.5 bn), commodities products (€24.0 bn), alternative UCITS products (€5.9 bn), money market funds (€3.9 bn), mixed-assets funds (€1.6 bn), and “other” funds (€0.2 bn).

Graph 2: Market Share, Assets Under Management in the European ETF Segment by Asset Type,

June 30, 2020

Source: Refinitiv Lipper

 

Source: ETFWorld

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