Emerging markets help drive Europe ETFs to record level

ETFsAssets in exchange-traded products (ETPs) listed in Europe have surpassed the $500 billion (€446 billion) milestone to reach a new record of $511 billion at the end of April.

Record levels of assets were also reached for exchange-traded funds (ETFs) and ETPs listed globally, according to ETFGI’s monthly ETF and ETP global insight report for April 2015.

Europe, which recently celebrated 15 years since the first ETFs were listed, saw net inflows of $3.4 billion in April 2015 into ETPs listed on its exchanges.

Fixed income products dominated, with $4.8 billion, maintaining the trend of the past year, while equity saw the largest net outflows of $2.1 billion.

For the year ending April 2015, European flows hit a record level of $38.4 billion, significantly higher than the $20.4 billion net inflows accumulated over the same period in 2014.

The Deutsche Bank db x-trackers/db ETC gathered the largest net inflows in April with $1.2 billion, followed by State Street’s SPDR ETFs with $593 million. UBS ETFs came in third, followed by Vanguard and Deka.

“Market performance outside the United States contributed to the overall increase in assets invested in ETFs/ETPs. Developed and emerging markets had a very good month, gaining 5% and 8%, respectively while in the United States the S&P 500 and Dow were up less than 1%,” says Deborah Fuhr, managing partner of ETFGI.

The latest ETP Landscape report for April 2015 from asset manager BlackRock says developed market equities were the most popular ETP category in April, with $10.4 billion in new money. However, the report showed a loss for US equity funds with assets down by $15.5 billion in April.

Ursula Marchioni, head of ETP research at BlackRock, says: “April’s data endorses the fact that Europe is the ETP industry’s bright spot right now. ... 60% of the market’s growth in 2015 is down to European-domiciled funds. It’s a great vote of confidence for the region in a month we celebrated its 15-year anniversary.”

©2015 funds europe