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Bond ETFs thrive in May as equities suffer outflows

ETFEuropean bond ETFs enjoyed positive flows in May as markets bounced back, but equities suffered redemptions, according to the latest figures from Refinitiv.

While bond ETFs posted the highest inflows for the month with €6.4 billion, equity ETFs saw investors pull out €1.2 billion throughout the period. 

Overall, net new cash into European ETFs reached €5.3 billion throughout the month, driven by fixed income flows, and assets under management increased to €798.7 billion – up from €777.9 billion at the end of April.

Commodities also saw inflows of €0.5 billion, followed by mixed assets with €0.1 billion. Despite the outflows from equities and other asset classes such as alternatives (€0.01 billion), May was still seen as a positive month overall.

Detlef Glow, regional head of research at Refinitiv, said: “As the security markets further recovered from the lockdown-induced downturn caused by the onset of the coronavirus pandemic, May was another positive month for the European ETF industry, with ETF promoters enjoying inflows.”

The best-selling ETF promoter in Europe was iShares with €4 billion of inflows, followed by JP Morgan (+€0.6 billion) and UBS ETF (+€0.4 billion). 

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