Lipper’s Detlef Glow sees “surprising” pattern in August ETF flows

ETFSmaller providers managed to creep into a ranking of the top ten best selling ETF promoters in August.

Just four of Europe’s largest ETF promoters were among the top ten, prompting a leading analyst to express “surprise”.

Detlef Glow, regional head of research at Thomson Reuters Lipper, said: “Since the European ETF market is highly concentrated, it was somewhat surprising that only four of the ten largest promoters by assets under management were among the ten top-selling ETF promoters for August.”

Lipper data released publicly today shows European ETF promoters saw falling net inflows in August. Net inflows of €3.1 billion were the lowest monthly net inflows into ETFs in Europe since November 2016’s €3 billion figure.

ETF giant iShares was the bestselling ETF promoter in Europe with €1.8 billion. Other dominant players came behind, though by a wide margin. State Street’s SPDR saw €0.4 billion of net inflows, and Vanguard Group €0.3 billion.

The full list of top ten names in descending order is iShares, SPDR, Vanguard, BNP Paribas East ETF, Pimco, UBS ETF, Ossiam, ThinkCapital, HSBC and First Trust.

“Since the flows of the ten top promoters accounted for 109.66% of the overall estimated net flows into ETFs in Europe for August, it was clear that some of the 48 promoters (16) faced net outflows (-€0.4 bn in total) over the course of August,” Glow wrote in Lipper’s ‘European ETF Market Report’ for August.

Despite some concerns that the US equity market is over-bought, the best selling ETF for August was iShares Core S&P 500 Ucits ETF USD (Acc), which accounted for net inflows of €0.4 billion, or 12.74% of the overall net inflows.

US equity was the best-selling Lipper global classification, with €0.5 billion of net inflows, though equity was not the best-selling asset class overall, which was bonds, with €2.1 billion of inflows.

This was another surprise in the data, noted Glow.

“With regard to the overall sales for August, it was somewhat surprising that only four bond peer groups were among the ten best selling Lipper classifications, since bond ETFs were investors’ darlings for the month,” he wrote.

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