Refinitiv: Despite the current situation in Ukraine, March 2022 was another positive month for the European ETF industry since promoters enjoyed inflows.
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By Detlef Glow, Lipper’s head of EMEA research at Refinitiv
These inflows occurred in a volatile market environment in which investor sentiment was impacted by increasing inflation rates, geopolitical tensions and the still ongoing COVID-19 pandemic in Europe and other parts of the world.
The performance of the underlying markets led in combination with the estimated net inflows to increasing assets under management (from €1,307.1 bn as of February 28, 2022, to €1,334.1 bn at the end of March).
The increase of €27.0 bn for March was driven by the performance of the underlying markets (+€23.3 bn), while estimated net sales contributed €3.8 bn to the assets under management.
It was not surprising equity funds (€958.8 bn) held the majority of assets, followed by bond funds (€309.7 bn), commodities products (€52.6 bn), alternative UCITS products (€6.4 bn), money market funds (€3.5 bn), mixed-assets funds (€3.1 bn), and “other” funds (€0.1 bn).
Graph 1: Market Share, Assets Under Management in the European ETF Segment by Asset Type, March 31, 2022
Source: Refinitiv Lipper
Fund Flows by Asset Type
The European ETF industry enjoyed healthy estimated net inflows for March (+€3.8 bn) which were below the rolling 12-month average (€12.5 bn).
The inflows in the European ETF industry for March were driven by bond ETFs (+€2.4bn), followed by equity ETFs (+€2.0 bn), mixed-assets ETFs (+€0.1 bn), money market ETFs (+€0.03 bn), and “other” ETFs (+€0.003 bn). On the other side of table, commodities ETFs (-€0.2 bn) and alternative UCITS ETFs (-€0.6 bn) faced outflows.
This flow pattern drove the estimated overall net inflows to €9.1 bn for the month. Generally speaking, it was surprising that ETFs from all asset types enjoyed inflows for the month given the in-general negative market environment.
Source: ETFWorld
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