European ETF Market Trends

European ETF market flows continued their positive trend in July 2015.

Net New Assets (NNA) during this month amounted to EUR 7.8BN, after a positive month of June with EUR 1.5BN of inflows. Total Assets under Management are up 22% compared with the end of 2014, reaching EUR 444BN, and include a significant market impact (+11.7%*). Both Equities and Fixed Income registered positive inflows during the month of July, while commodities experienced outflows.

• Equity ETF flows rose significantly to EUR 6BN vs EUR 3.1BN of inflows last month. Investors continued to favour developed equity ETFs with EUR 6.5BN of inflows. European indexation flows reached EUR 4.4BN with increased positive flows on regional, financials and dividend ETFs slightly mitigated by net outflows on peripheral Europe. Inflows reached EUR 444M on Germany and EUR 2.9BN on Developed European Region ETFs, with 182M net outflows on Spain and Italy. US flows were positive at EUR 1BN, while Japanese flows slowed down at EUR 113M. The negative flows trend on Emerging Markets continued with EUR 509M of outflows in July.
• Fixed income indexation flows rebounded to EUR 2.2BN of positive flows. Developed markets saw the bulk of inflows with EUR 2.3BN while EM ETFs show outflows of EUR 87M. European Govies saw EUR 556M of inflows. On corporate bonds, inflows were mainly concentrated on investment grade bonds at EUR 794M, whereas they were more limited on high yield at EUR 154M.
• Commodities flows were negative at EUR 309M, reaching a 12-month record outflow.

Marlène Hassine – Head of ETF Research – Lyxor ETF