In November 2023, the ETF market witnessed a substantial influx of investments totalling €137.4 billion globally, according to an Amundi ETF report.
Equity ETFs notably received €97.3 billion, while fixed-income ETFs added €34.1 billion.
European Ucits ETFs specifically achieved impressive growth, attracting €18.1 billion, marking the second-highest monthly inflow for the year.
Equity ETFs in Europe reached a new high with €12.4 billion allocated, primarily to US and developed world ETFs, signifying a strong investor focus on these regions.
ESG ETFs also experienced considerable interest, with equity ESG ETFs gathering €3.7 billion, accounting for about 30% of total equity allocations. In the fixed income segment, European Ucits fixed income ETFs saw an inflow of €6.4 billion, with corporate bonds, both investment-grade and high-yield, drawing significant attention.
Investor sentiment favoured riskier investments, as evidenced by the allocation of €0.9 billion to high-yield bonds and €3.5 billion to investment-grade corporate bonds.
Sovereign bonds also witnessed considerable inflows, especially in US dollar-denominated bonds.
The investment behaviour indicated a widespread belief among investors that interest rates have peaked, as seen in the allocation patterns across various bond maturities.
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