Inflows to European-domiciled ETFs were positive for the 23rd year in a row last year, despite market turmoil. However, assets under management (AUM) declined, and it was only the industry’s fifth-highest yearly inflow figure on record, according to Refinitiv Lipper.
The data provider’s ‘European ETF Industry Review: 2022’ reported net inflows of €80.2 billion into European ETFs throughout 2022. This was still above the rolling one-year average of €48.4 billion, the firm estimated.
AUM in the European ETF industry decreased from €1.3 trillion in 2021 to €1.2 trillion in 2022 due to a negative performance of the underlying markets.
Equity ETFs reported net inflows of €51.1 billion and were positioned as the best-selling asset type. Bond ETFs followed, with net inflows of €30.8 billion.
‘Alternative’ Ucits ETFs and commodities products were the only asset types to report outflows throughout the year, with €600 million and €3.6 billion of outflows, respectively.
ESG also remained an important topic to investors, as 6.2% of AUM was invested in ESG-related ETFs.
Detlef Glow, head of Lipper Emea research at Refinitiv, said: “In the aftermath of the Covid-19 pandemic, investors were concerned about the still-disrupted delivery chains and increasing inflation rates when the year 2022 started.
“Within this environment, it was somewhat surprising that the European ETF industry enjoyed inflows over the course of 2022. That said, these inflows repeated a trend which we have witnessed over the course of other rough market periods.”
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