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August ETF sales slowed “considerably”

ETF_promotingFalling net inflows into European ETFs were further revealed today as Morningstar reported that sales “slowed considerably” in August.

The inflows of €3.5 billion – down from €7.8 billion in July – marked the lowest level seen in a one-month period since September 2016, said Morningstar.

“The reasons for the slackening pace of inflows were many: net inflows to equity ETFs hit a 11-month low, demand for bond ETFs remained subdued for the second month running, and commodity ETPs [exchange-traded products] suffered net redemptions for the first time in eight months,” said Morningstar.

The Eurozone large-cap equity category saw net outflows for the first time since October 2016, with Euro Stoxx 50 ETFs from iShares and ComStage posting the highest outflows.

And MSCI World ETFs had their first negative month since April 2016.

The figures reflect similar Thomson Reuters Lipper data published yesterday.

But according to Morningstar’s Ali Masarwah, the still-strong flows into equity ETFs tracking the financial services sector in August after taking in record subscriptions in July, indicates that investors “remain confident about the growth prospects for the Eurozone economy”.

The Morningstar data showed that US large-cap blend ETFs had the highest inflows in August, “a rare feature in a year where European equity funds have dominated sales”.

Also, Amundi ETF MSCI Emerging Markets was the main driver of inflows for global emerging markets, taking in €370 million, accounting for almost all net inflows into the category.

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