European equity exchange-traded funds (ETFs) achieved a significant milestone in June 2023, with assets under management (AUM) exceeding €1 trillion (€1,014.0 billion) for the first time.
ETF promoters in Europe enjoyed estimated net inflows of €11.5 billion in June, contributing to the industry’s overall growth. Total AUM in the European ETF market reached €1,407.7 billion during the month.
Equity ETFs experienced the highest estimated net inflows of €6.2 billion, driven by a mixed market environment.
Investors were optimistic about central banks’ efforts, particularly the US Federal Reserve, to tackle inflation and stabilise interest rates. However, concerns about geopolitical tensions, disrupted supply chains and potential recessions remained, fuelled by inverted yield curves signalling a possible economic downturn.
Equity Global was the top-selling ETF category in June, with estimated net inflows of €4.5 billion, followed by Equity US with €2.8 billion and Bond EUR Corporates with €1.4 billion. iShares was the best-selling ETF promoter, attracting €6.3 billion in net inflows, followed by Vanguard with €1.8 billion and Xtrackers with €1.4 billion.
“The European ETF industry enjoyed inflows over the course of June 2023. These inflows occurred in a somewhat unstable but positive market environment in which some asset classes showed positive results,” said Detlef Glow, head of EMEA research at LSEG Lipper.
“Meanwhile, others performed negatively over the course of the month. 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 the high and further increasing inflation rates and may, therefore, start to keep interest rates at least stable quite soon,” he added.
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