Firms promoting Exchange Traded Funds in Europe have reported 2.5 billion euro in net inflows for last month, despite a persistently difficult market environment, market research firm Refinitiv Lipper said on Tuesday. The inflows remain “far below” the 12-month rolling average of 11.5 billion euro per month.
Equity ETFs posted 1.3 billion euro in estimated net inflows last month. Bond ETFs reported inflows for May, while small outflows were reported for alternative Ucits and commodity ETFs. “Given the general negative market environment, it was surprising that bond and equity ETFs enjoyed inflows for the month,” Refinitiv Lipper said.
Total assets under management in the European ETF industry declined to 1,309 billion euro in May, down from 1,322 billion at the end of April. The decrease of 13.2 billion euro was explained mostly, for 15.7 billion euro, by declining asset values, which was only partly offset by 2.5 billion euro in new sales,
“May 2022 was another positive month for the European ETF industry since promoters enjoyed inflows,” said Detlef Glow, Head of EMEA Research at Refinitiv Lipper, in a statement. “These inflows occurred in a negative and volatile market environment in which investor sentiment was impacted by high inflation rates, increasing interest rates, geopolitical tensions, and disrupted delivery chains caused by the still ongoing COVID-19 pandemic in Europe and other parts of the world,” he said.
Looking at the overall European ETF sector, equity funds, with 933 billion euro, held the majority of assets, followed by bonds funds, with 309 billion euro, commodities (53 billion), alternative Ucits products (6.3 billion). Money market funds accounted for 4 billion euro while mixed-assets funds accounted for 3.2 billion.
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