European ETFs recorded their strongest-ever quarterly inflows in Q3 2024, raising $68.6 billion in net new assets, according to Invesco’s European Demand Monitor. This marks the highest quarterly figure in the Emea ETF industry’s history.
The year-to-date net new money for European ETFs reached $175.2 billion, a 65% increase compared to the same period in 2023. This strong performance sets net new money on track to surpass the previous annual record of $192.9 billion set in 2021.
Equity ETFs led the inflows, capturing 66% of Q3’s net new money, bringing total equity assets under management to an all-time high of $1.6 trillion. Yeart to date equity net new money reached $129.3 billion, more than double the same period in 2023.
US equities were the biggest driver, bringing in $15.6 billion, followed by global equities at $14.6 billion. European equities also saw strong interest, with $5.2 billion in inflows.
Fixed income ETFs set records
Fixed income ETFs also experienced significant growth, with $23.3 billion in net inflows for Q3, a 44% increase from Q2. July 2024 marked the highest monthly inflow ever recorded for fixed income ETFs in the Emea region. Investment-grade credit ETFs led the charge, attracting $7.9 billion, while developed market government bonds and cash management strategies brought in $6.2 billion and $4 billion, respectively.
Gary Buxton, head of Emea ETFs at Invesco, noted the increasing breadth of markets in Q3 and pointed to a positive market outlook despite geopolitical uncertainties. Buxton anticipates that the record levels of cash currently on the sidelines could support markets in Q4, especially if investors deploy funds during market pullbacks.
