ETF promoters in Europe had estimated net inflows of €7.7 billion for May 2023, according to data from LSEG Lipper.
Of this, bond ETFs saw the largest net inflows, at €4.3 billion, followed by equity ETFs with inflows of €2.7 billion.
Money market ETFs saw inflows of €0.8 billion, suggesting investors were more inclined to take risks.
Detlef Glow, head of Europe, Middle East, Africa research, LSEG Lipper, said: “The market sentiment was still driven by hopes that central banks, especially the US Federal Reserve, may have reached the last phase of their fight against further increasing inflation rates and may, therefore, start to keep interest rates at least stable quite soon. Some investors already expect that there might be room for decreasing interest rates later this year. Nevertheless, there are still some concerns that are raised by inverted yield curves, which are seen as an early indicator for a possible recession.”
iShares was the best-selling ETF promoter in Europe for May, with €4.5 billion of inflows, followed by BNP Paribas and Vanguard.
The best-selling Lipper global classification – a standard for classifying structure and the concentration of assets within the European ETF industry – for May was equity global, which had €2.6 billion of inflows, followed by bond EUR corporates and bond EMU government.
The classification also divided the European ETF market into 164 different peer groups at the end of May 2023. The highest assets under management were held by funds classified as equity US (€290 billion), followed by equity global (€202.9 billion), equity Europe (€70.4 billion), equity emerging markets global (€66.2 billion), and equity Eurozone (€49.6 billion). These five peer groups accounted for 49.56% of the overall assets under management in the European ETF segment.
Only 24 of the 49 ETF promoters in Europe held assets at or above €1 billion. The largest ETF promoter in Europe — iShares with €630.4 billion of AUM — accounted for 46.01% of the overall AUM, followed by Amundi ETF (€179.6 billion) and Xtrackers (€137.1 billion).
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