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Refinitiv : European ETF Market, May 2021

Refinitiv: May 2021 marked the fourteenth consecutive month with inflows into ETFs after the outflows caused by the outbreak of the COVID-19 pandemic in March 2020.

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


These inflows occurred in a positive but volatile market environment in which investor sentiment was still impacted by the dynamics of the COVID-19 pandemic and the resulting actions taken by central banks and governments in Europe and other parts of the world.

The positive performance of the underlying markets led in combination with the estimated net inflows to increasing assets under management (from €1,124.0 bn as of April 30, 2021, to €1,144.6 bn at the end of May) in the European ETF industry.

The increase of €20.6 bn for May was driven by the estimated net sales (+€12.8 bn), while the performance of the underlying markets contributed €7.9 bn to the increase of assets under management.

It was not surprising equity funds (€813.0 bn) held the majority of assets, followed by bond funds (€279.3 bn), commodities products (€41.5 bn), alternative UCITS products (€5.9 bn), money market funds (€2.4 bn), mixed-assets funds (€2.4 bn), and “other” funds (€0.1 bn).

Graph 1: Market Share, Assets Under Management in the European ETF Segment by Asset Type, May 31, 2021

14062021 1

Source: Refinitiv Lipper

Fund Flows by Asset Type

The European ETF industry enjoyed healthy estimated net inflows for May (+€12.7 bn) which were above the rolling 12-month average (€12.1 bn).

The inflows in the European ETF industry for May were driven by equity ETFs (+€8.5 bn), followed by bond ETFs (+€3.3 bn), commodities ETFs (+€0.5 bn), alternative UCITS ETFs (+€0.3 bn), money market ETFs (+€0.1 bn), and mixed assets ETFs (+€0.1 bn). Meanwhile, “other” ETFs (-€0.003 bn) were the only asset type which showed outflows for the month.

This flow pattern drove the estimated overall net inflows to €12.8 bn for the month and €78.4 bn for 2021 so far.

Graph 2: Estimated Net Sales by Asset Type, May 2021 (Euro Millions)

14062021 2

Source: Refinitiv Lipper

Source: ETFWorld

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