Refinitiv: The European ETF industry enjoyed inflows over the course of August 2023. These inflows occurred in a further unstable market environment over the course of the month in which some asset classes nevertheless showed positive results while others performed negatively.
By Detlef Glow, Lipper’s head of EMEA research at Refinitiv
The market sentiment was still driven by hopes that central banks—especially the U.S. Federal Reserve—may have reached the last phase of their fight against high and further increasing inflation rates and may, therefore, start to keep interest rates at least stable quite soon. Some investors already expect that there might be room for decreasing interest rates later this year which might be reflected by the estimated inflows in bond ETFs. Nevertheless, there are still some concerns about geopolitical tensions and the still ongoing normalization of the disrupted delivery chains as well as a still possible recession in the U.S. and other major economies around the globe. These fears are raised by inverted yield curves which are seen as an early indicator for a possible recession.
It is noteworthy that Jacobi Asset Management launched the first Bitcoin spot ETF (Jacobi FT Wilshire Bitcoin ETF GG008BMTPK874) globally on August 15, 2023, which is based in Guernsey. Given its investment focus on a single asset (Bitcoin) the fund is not regulated under the UCITS regulation.
The performance of the underlying markets led in conjunction with the estimated net inflows to decreasing assets under management (from €1,452.2 bn as of July 31, 2023, to €1,444.5 bn at the end of August). At a closer look, the decrease in assets under management of €7.7 bn for August was driven by the performance of the underlying markets (+€17.8 bn), while the estimated net inflows contributed (+€10.2 bn) to the decline in assets under management.
As for the overall structure of the European ETF industry, it was not surprising equity funds (€1,035.8 bn) held the majority of assets, followed by bond funds (€347.3 bn), commodities products (€33.2 bn), money market products (€19.3 bn), alternative UCITS products (€5.3 bn), and mixed-assets funds (€3.7 bn).
Graph 1: Market Share, Assets Under Management in the European ETF Segment by Asset Type, August 31, 2023
Source: LSEG Lipper
ETF Flows by Asset Type
The European ETF industry enjoyed estimated net inflows (+€10.2 bn). These flows were slightly above the rolling 12-month average (€10.0 bn).
The inflows in the European ETF industry for August were driven by equity ETFs (+€6.4 bn), followed by bond ETFs (+€2.2 bn), money market ETFs (+€1.5 bn), commodities ETFs (+€0.4 bn), and mixed-assets ETFs (+€0.04 bn). On the other side of the table, alternative UCITS ETFs (-€0.3 bn) faced outflows for August 2023.
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Fonte: ETFWorld.it
