Global ETF market shows strong finish to 2018

Global ETF market inflowsThe global exchange-traded fund (ETF) market was attractive to investors during December 2018, experiencing net inflows of nearly €68 billion.

According to Amundi’s latest monthly ETF Market Flow report, there was €46 billion in new investment in equities ETFs during December and €20.5 billion into fixed income ETFs.

During 2018 as a whole, the global ETF market witnessed €426 billion of inflows, made up of €304 billion into equities and €119 billion into bonds.

However, this represents a decline on 2017 figures, when the global ETF sector recorded net inwards investment of €609 billion, with €447 billion inflows into equities and €162 billion into bonds.

Based on December’s data, the US ETF market finished the year strongly and investors also continued to increase their exposure to emerging markets equities. European ETFs witnessed modest net inflows over the month.

During 2018, there were net investment flows into both European equities (+ €29.5 billion) and US equities (+ €17.3 billion) ETF markets.

In the bond ETF segment, December data mirrored trends over the year. Investors concentrated their interest in sovereign bonds, which experienced net inflows of €3.6 billion in December and €14.6 billion year-on-year.

This was at the expense of corporate debt, which contracted by €0.4 billion in December and €2.3 billion over the 12 months.

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