Refinitiv : European ETF Market, September 2020

Refinitiv: September was another positive month for the European ETF industry since promoters enjoyed inflows as economies and securities markets stabilized further after the coronavirus lockdown-induced economic downturn

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

The negative performance of the underlying markets led to decreasing assets under management (from €877.1 bn as of August 31, 2020, to €870.9 bn at the end of September) despite net inflows.

This means the decrease of €6.2 bn for September was driven by the performance of the underlying markets (-€12.1 bn), while net sales contributed inflows of €5.9 bn to assets under management.

It was not surprising equity funds (€576.0 bn) held the majority of assets, followed by bond funds (€258.9 bn), commodities products (€25.1 bn), alternative UCITS products (€5.9 bn), money market funds (€3.1 bn), mixed-assets funds (€1.8 bn), and “other” funds (€0.2 bn).

Graph 1: Market Share, Assets Under Management in the European ETF Segment by Asset Type, September 30, 2020

13-10-20 Refinitiv 1

Source: Refinitiv Lipper

Fund Flows by Asset Type

The European ETF industry enjoyed estimated net inflows for September (+€5.9 bn) which were below the rolling 12-month average.

The outflows decreased the rolling 12-month average to €7.5 bn from €8.7 bn in August 2020.

The inflows in ETFs were driven by equity ETFs (+€6.9 bn), followed by alternative UCITS ETFs (+€0.1 bn), ”other” ETFs (+€0.01 bn), and mixed-assets ETFs (+€0.004 bn).

Meanwhile, money market ETFs (-€0.1 bn), bond ETFs (-€0.2 bn), and commodities ETFs (-€0.9 bn) faced outflows for the month.

This flow pattern drove the estimated overall net inflows to €5.9 bn for the month and €45.8 bn year to date.

Graph 2: Estimated Net Sales by Asset Type, September 2020 (Euro Millions)

13-10-20 Refinitiv 2

Source: Refinitiv Lipper

Source: ETFWorld

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