Amundi ETF Flows Analysis : In equities, European UCITS ETFs accumulated €28.6bn in November – almost €6bn more than last month.
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Amundi ETF Market Flows Analysis with data as of end November 2024
Fannie Wurtz Head of Distribution and Wealth Division, Passive & Alternatives business lines
The re-election of Donald Trump as US president in November fuelled an exceptional equity ETF buying-spree. Total flows into European UCITS ETFs matched the prior month but investors added €28.6bn to equities and only €0.5bn to fixed income.
Flows into global ETFs were even higher than October at €181.4bn with investors allocating €144.1bn to equities and €28.4bn to fixed income. The Americas led the equity charge with net new assets in these regions totalling €118bn.
Large blend US indices added €51bn last month alone. The second highest performing categories were large growth US-based growth stocks, which gained €15.7bn. Investors also allocated €7.1bn to the financials category.
Inflation concerns were reflected in investors withdrawal of €4.2bn from long Treasuries. There were also outflows of €4.6bn from Chinese equities.
European Flows
Equities
In equities, European UCITS ETFs accumulated €28.6bn in November – almost €6bn more than last month. US strategies were the principal equity winners, as investors channelled €21.9bn into these ETFs.
World indices were the second most popular category, gaining €8bn. Investors withdrew €2.3bn from developed European indices amid political uncertainty in the region. US smart beta was the third most popular strategy with investors adding €4.8bn to this category.
Equal weight equity strategies attracted €5.4bn, a large strategic allocation that reflects investor concerns about over-concentration in the US stock market. Other investors could be using these indices as a hedge against concentration risk while remaining invested in equities.
In sector ETFs, financials reflected similar global trends with this segment pulling in €1.2bn, as investors took Trump’s win as a signal there might be deregulation of banks.
ESG equity ETFs added €4.8bn. Investors added €3.6bn to US indices and €1.7bn to world strategies.
Fixed Income
Flows into European UCITS fixed income ETFs were muted given the appeal of equities in November. Investors allocated €0.5bn to broad indices and €0.4bn to money market accounts.
But there were €0.5bn outflows from government bonds. US-dollar denominated debt all maturity indices lost €1.4bn while investors added €0.6bn to US short-dated bonds. This reflects concerns Trump’s policies could be inflationary.
Investors also withdrew €0.8bn from long-dated euro-denominated debt and assigned €0.2bn to short-dated debt.
Sterling-denominated debt gained €0.4bn, spilt evenly between all maturities and short-dated debt.
Euro-denominated corporate debt gained €0.5bn while investors withdrew €0.3 from the US market and €0.2bn from sterling markets.
Investors allocated only €0.2bn to ESG fixed income strategies. They added €0.7bn to investment grade corporate debt and withdrew €0.7bn from government debt with small amounts added to high-yield and broad product ranges.
Source: ETFWorld
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