Refinitiv: As the security markets further recovered from the lockdown-induced downturn caused by the onset of the coronavirus pandemic, June was another positive month for the European ETF industry …
By Detlef Glow, Lipper’s head of EMEA research at Refinitiv
ETF promoters enjoyed inflows during the month. The combination of above average inflows and the positive performance of underlying markets led to an increase in assets under management from €798.5 bn as of May 31, 2020, to €830.0 bn at the end of June.
The increase of €31.5 bn for June was driven by the performance of the underlying markets (+€17.8 bn), while the net inflows contributed €13.7 bn to the increase in assets.
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 1: Market Share, Assets Under Management in the European ETF Segment by Asset Type, June 30, 2020
Source: Refinitiv Lipper
Fund Flows by Asset Type
The European ETF industry enjoyed estimated net inflows for June (+€13.7 bn) which were above the rolling 12-month average. These flows brought that average up to €7.7 bn from €6.9 bn in May 2020. The inflows in ETFs were driven by bond funds (+€8.5 bn), followed by equity ETFs (+€5.0 bn), commodities ETFs (+€0.8 bn), and “other” ETFs (+€0.1 bn), while mixed-asset ETFs (-€0.02 bn), alternative UCITS ETFs (-€0.1 bn), and money market ETFs (-€0.5 bn) faced outflows.
This flow pattern drove the estimated overall net flows to positive €13.7 bn for the month and positive €17.4 bn year to date.