Assets under management (AuM) of Europe-domiciled passive products bounced to a record high last month, which is seen as a sign of confidence in the Eurozone.
Morningstar’s European ETF fund flow report for July showed that AuM reached €613 billion and ETFs enjoyed net inflows of €7.8 billion, bringing this year’s tally to €65.2 billion.
Equity ETFs enjoyed inflows of €4.88 billion and commodity exchange-traded products rebounded.
However, bond products had the second lowest one-month inflow this year, drawing sales of €1.56 billion.
iShares topped the asset flows by-provider, drawing in net flows of €3.54 billion.
Ali Masarwah, Europe, Middle East and Africa editorial director for Morningstar, said: “European investors displayed confidence in the Eurozone’s recovery in July. Most of the net new money targeted plain vanilla Euro Stoxx 50 trackers with iShares enjoying the highest flows.”
Masarwah added that the positive sentiment towards the Eurozone was also reflected by the record inflows for financials ETFs, most of which track eurozone banks.
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