European ETFs see inflows weaken in second quarter

The European exchange-traded fund (ETF) market saw weaker inflows in the second quarter (Q2) of the year, according to Morningstar.

European ETF inflows of €24 billion in Q2 were down from €33.4 billion in the previous period while assets under management grew to €613.1 billion from €600.5 billion.

The increase in assets lagged that of net new money, implying net capital losses of €11.3 billion over the quarter.

US equity ETFs were on the back foot in the second quarter while emerging markets ETFs and broad eurozone exposures were sought after.

Eurozone exposures probably benefitted from a reduction in political risks, Morningstar said. Emerging markets have been enjoying a good run and the recent slide in the US dollar can only provided further support.

David Buckle, head of investment solutions design at Fidelity International, said it appeared that the US dollar bull run was now at an end.

“I think it’s now time to short the US dollar against a basket of foreign currencies,” he said.

Fixed income ETFs saw €7.4 billion of net inflows. Investor interest remains focused on higher-yielding propositions such as emerging markets bonds. However, both corporate and government US fixed income also did well.

©2017 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST