European ETF assets increased by €18.7 billion in December last year, largely driven by market performance.
Net sales of ETFs accounted for €5 billion, meaning that the bulk of additional assets, €13.8 billion, were achieved by favourable market conditions.
Research by information provider Lipper showed that equity ETFs posted their third consecutive month of having the highest net inflows in the European ETF industry for December at €4.5 billion.
The best selling Lipper global classification for December was equity Europe (€1.0 billion), followed by equity US (€0.9 billion) and equity Eurozone (€0.7 billion).
However, Lipper also found that that some funds in the European ETF market are quite low in assets and may face the risk of being closed in the near future.
“They are obviously lacking investor interest and might therefore not be profitable for the respective fund promoters,” said Detlef Glow, head of Europe, Middle East and Afirca research at Thomson Reuters Lipper.
These included Swedish bond ETFs and United Arab Emirates ETFs.
Overall, in December the majority of assets were in equity ETFs (€356.4 billion), followed by bond funds at €132 billion. Commodity products made up €15.9 billion of the European exchange-traded product market.
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