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ETF flows hit record high despite slowdown

Flows into European exchange-traded funds (ETF) hit an all-time high in December 2017 despite having slowed substantially.

According to research by Lyxor Asset Management yearly European ETF flows were €93.9 billion. But inflows in December dived from €10.4 billion in November to €4.2 billion, one of the lowest figures in the year.

Marlène Hassine Konqui, head of ETF research at Lyxor, said Trump’s tax cut bill meant flows surged into US equities at the expense of their European counterparts.

US equity ETFs collected €12.5 billion of fresh money in 2017 while €532 million flowed out of European equity ETFs.

There was also weakness in high yield bonds ETFs where outflows in December of €468 million led to their worst month in 2017.

Total European ETF market assets under management ended the year 23% higher than it had started at €635 billion.

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