According to Amundi Asset Management’s ETF Flows Analysis for December 2023, global exchange-traded fund (ETF) flows reached a remarkable €770 billion over the year.
The report highlighted a substantial surge in equity inflows in December, with investors adding €109.6 billion in response to the Federal Reserve’s dovish stance. This marked December as one of the best months for equity ETFs in 2023.
The analysis showed that European Ucits ETFs attracted significant attention, with total inflows of €151.8 billion in 2023. Of this, fixed-income ETFs saw record inflows of €61.5 billion, while equity ETFs received €90.3 billion. Government bonds, particularly in US-dollar and Euro-denominated debt, dominated the fixed-income flows.
In equities, European Ucits ETFs gathered €90.3 billion throughout the year, with a notable increase in the fourth quarter. US equities were the primary focus, especially towards the year-end, as investors anticipated a decrease in interest rates in 2024.
The fixed income segment also saw significant activity, with €33.4 billion allocated to government debt and €16.6 billion to corporate bonds. ESG strategies in fixed income gained €12.2 billion, though this was less than a fifth of total fixed income allocations, reflecting the popularity of government debt funds.
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