Refinitiv: As the security markets further recovered from the lockdown-induced downturn caused by the onset of the coronavirus pandemic, May was another positive month for the European ETF industry, with ETF promoters enjoying inflows …
By Detlef Glow, Lipper’s head of EMEA research at Refinitiv
The combination of below average inflows and the positive performance of underlying markets led to an increase in assets under management from €777.9 bn as of April 30, 2020, to €798.7 bn at the end of May.
The increase of €20.8 bn for May was driven by the performance of the underlying markets (+€15.5 bn), while the net inflows contributed €5.3 bn to the increase in assets.
It was not surprising equity funds (€522.8 bn) held the majority of assets, followed by bond funds (€241.2 bn), commodities products (€22.8 bn), alternative UCITS products (€5.8 bn), money market funds (€4.4 bn), mixed-assets funds (€1.6 bn), and “other” funds (€0.1 bn).
Graph 1: Market Share, Assets Under Management in the European ETF Segment by Asset Type, May 31, 2020
Source: Refinitiv Lipper
Fund Flows by Asset Type
The European ETF industry enjoyed estimated net inflows for May (+€5.3 bn) which were below the rolling 12-month average. These flows brought that average up to €6.6 bn from €6.5 bn in April 2020. The inflows in ETFs were driven by bond funds (+€6.4 bn), followed by commodities ETFs (+€0.5 bn) and mixed-assets ETFs (+€0.1 bn), while alternative UCITS ETFs (-€0.01 bn), ”other” ETFs (-€0.01 bn), money market ETFs (-€0.4 bn), and equity ETFs (-€1.2 bn) faced outflows.
This flow pattern drove the estimated overall net flows to positive €5.3 bn for the month and positive €3.7 bn year to date.