Refinitiv : European ETF Market June 2022

These outflows occurred in a negative and volatile market environment in which investor sentiment was impacted by high inflation rates, increasing interest rates, geopolitical tensions, and disrupted delivery chains caused by the still ongoing COVID-19 pandemic in Europe and other parts of the world. The performance of the underlying markets led to decreasing assets under management (from €1,308.7 bn as of May 31, 2022, to €1,240.0 bn at the end of June). In more detail, the decrease of €68.8 bn for June was driven by the performance of the underlying markets (-€68.8 bn), while estimated net outflows contributed negative €0.01 bn to the assets under management.

As for the overall structure of the European ETF industry, it was not surprising equity funds (€873.8 bn) held the majority of assets, followed by bond funds (€301.4 bn), commodities products (€51.1 bn), alternative UCITS products (€6.2 bn), money market funds (€4.3 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, June 30, 2022

Source: Refinitiv Lipper

Fund Flows by Asset Type

The European ETF industry faced for June the first estimated net outflows (-€0.01 bn) since March 2020. As to be expected these flows were far below the rolling 12-month average (€10.3 bn).

The inflows in the European ETF industry for June were driven by equity ETFs (+€2.6bn), followed by money market ETFs (+€0.3 bn), mixed-assets ETFs (+€0.03 bn), “other” ETFs (+€0.02 bn), and alternative UCITS ETFs (+€0.01 bn). On the other side of the table, commodities ETFs (-€0.7 bn) and bond ETFs (-€2.3 bn) were facing outflows.

This flow pattern drove the estimated overall net flows to negative €0.01 bn for the month. Given the general negative market environment, it was surprising that equity ETFs enjoyed inflows for the month.