European equity ETF inflows saw their second highest month of inflows year to date in July, on the back of continued strong economic growth in the Eurozone, according to new data.
Figures from Lyxor showed inflows of €3.4 billion into European equity ETFs, representing two thirds of overall equity inflows.
Total ETF assets under management were up 13% compared to the end of 2016, reaching €583 billion and including a positive market impact of 2%. Equity ETFs inflows reached €5.5 billion.
US equity ETF inflows continued to improve reaching €774 million, helped by the weakening US dollar and a strong earnings season, in particular in the tech sector.
Global ETF inflows continued to decelerate to €253 million as global monetary normalisation took centre stage and troubled markets. This also negatively affected emerging market equity ETF flows, reduced to their lowest level in 6 months.
Fixed income ETF inflows decreased to €2.3 billion, close to the lowest monthly level of the year reached in April.
Assets in emerging market and fixed income ETFs shrank significantly as investors awakened to a potentially hawkish US Federal Reserve and European Central Bank.
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