Refinitiv: November 2021 marked the twentieth consecutive month with inflows into ETFs after the outflows caused by the outbreak of the COVID-19 pandemic in March 2020.
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By Detlef Glow, Lipper’s head of EMEA research at Refinitiv
These inflows occurred in a volatile but still somewhat positive market environment in which investor sentiment was still impacted by the dynamics of the COVID-19 pandemic on the economies around the globe and the resulting actions taken by central banks and governments in Europe and other parts of the world. The positive performance of the underlying markets led to increasing assets under management (from €1,276.8 bn as of October 31, 2021, to €1,290.4 bn at the end of November)
. The increase of €13.7 bn for November was driven by estimated net sales (+€13.5 bn), while the performance of the underlying markets contributed €0.2 bn to the assets under management. With regard to assets under management, it was not surprising equity funds (€934.9 bn) held the majority of assets, followed by bond funds (€312.7 bn), commodities products (€30.3 bn), alternative UCITS products (€7.0 bn), mixed-assets funds (€3.0 bn), money market funds (€2.5 bn), and “other” funds (€0.04 bn).
Graph 1: Market Share, Assets Under Management in the European ETF Segment by Asset Type, November 30, 2021
Source: Refinitiv Lipper
Fund Flows by Asset Type
The European ETF industry enjoyed healthy estimated net inflows for November (+€13.5 bn) which were below the rolling 12-month average (€14.5 bn).
Graph 2: Estimated Net Sales by Asset Type, November 2021 (Euro Millions)
Source: Refinitiv Lipper
The inflows in the European ETF industry for November were driven by equity ETFs (+€8.5 bn), followed by bond ETFs (+€4.8 bn), alternative UCITS ETFs (+€0.2 bn), and mixed-assets ETFs (+€0.1 bn). Meanwhile, “other” ETFs (+€0.003 bn), money market ETFs (-€0.04 bn), and commodities ETFs (-€0.08 bn) showed outflows for the month.
This flow pattern drove the estimated overall net inflows to €13.5 bn for the month and €151.1 bn for 2021 so far. The flows for the first 11 months of 2021 have already topped the level of flows for the former record year 2019 and are set to reach a new all-time high at the end of the year.
Source: ETFWorld
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