European ETF Market has maintained its dynamism in May 2014. NET NEW ASSETS (NNA) during this month amounted to EUR4.5bn, representing nearly a quarter of year-to-date NNA of EUR18.8bn. Total Assets under Management are up 11% vs. the end of 2013, …..
Marlène Hassine – Head of ETF Research – Lyxor ETF
Lyxor Etf Barometer – June 2014
reaching EUR320bn, including a significant market impact (+4.3%*). Equity ETFs have benefited the most from this positive environment gathering three quarter of inflows this month vs half of the inflows year to date.
Equity indexations NNA in May reached EUR3.35bn, close to the 12-month record of EUR3.7bn reached in April 2014. Investors have confirmed their increasing appetite for European Equity indexations seeing solid inflows of 1.3bn, also close to its one-year record high. Most favored indexations were Dividend indexations with NNA at EUR198M and German indexations with NNA at EUR489M, representing a 12-month record high. Peripheral equities flows have been weaker than last months while Emerging Market flows have continued to be sustained.
Fixed income indexation inflows have experienced their lowest month YTD at EUR1.3bn. Yet, year-to-date inflows amount to EUR9.1bn, 14% above 2013 total NNA for the asset class. Interestingly, investors’ interest has been focused on Emerging Govies indexations that have reached a one-year record at EUR710M expressing the increasing confidence of investors in Emerging Markets and their appetite for yield. Corporate bonds have continued to gather solid flows of EUR288M, i.e. EUR2.3bn year-to-date comparing to only EUR248M for the whole 2013.
High Yield indexations have registered first outflows since July 2013.
Commodities have seen outflows in May of EUR182M, mainly from Gold ETFs, EUR115M, as worldwide political risks appeared mitigated. Worth noticing year-to-date flows on broad indexations are positive of EUR270M vs. EUR820M of outflows for 2013.
*MSCI ACWI +4.3% between 31/12/13 and 31/05/14 in EUR