Amundi ETF Flows Analysis : European UCITS ETF inflows in the third quarter of 2024 were €61.8bn, the best quarter for five years.
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Amundi ETF Market Flows Analysis with data as of end September 2024
Fannie Wurtz Head of Distribution and Wealth Division, Passive & Alternatives business lines
Year-to-date flows stand at €163bn – higher than the total flows of €159.2bn in 2021, which was a record year.
In September, investors allocated €21.7bn to European UCITS ETFs, adding €15.1bn to equities and €6.4bn to fixed income.
Global ETF flows were €117.9bn with all regions attracting interest. American investors allocated €89.3bn while those in EMEA and APAC added €21.8bn and €6.8bn respectively.
Large blend – US-based US indices – gained €31.6bn and US Large-Cap – EU-based US benchmarks captured €5.9bn.
European Flows – Month-to-Date Overview
Equities
Of the €15.1bn inflows into European UCITS equities last month, US equity indices gained €8.4bn while World benchmarks added €3.5bn.
China’s stimulus package encouraged investors to allocate €1.4bn to broad emerging market indices but overall allocations to China remain low.
The third most popular equity categories was US smart beta strategies with inflows of €2.7bn. This was driven by the popularity of equally-weighted strategies as investors continued to worry about the concentration risk of the US tech sector. For the same reason, investors turned towards defensive sectors, adding €0.6bn to health care and €0.3bn to utilities.
Investors allocated €2.7bn to ESG equity ETFs with €1.9bn being assigned to US indices and €0.7 to European indices.
Fixed Income
In European UCITS ETF fixed income, investors added €6.4bn. Investment-grade corporate debt led the way with inflows of €3.4bn followed by government bonds at €2bn.
Investors allocated to the US and Europe almost equally in investment-grade corporate debt, with €2bn to euro-denominated debt and €1.8bn to US-denominated debt. All maturities were the most popular strategy indicating investors were viewing this as fundamental investment rather than a duration play.
Investors assigned €0.6bn to both GBP-denominated and EUR-denominated government bonds.
There were outflows of €1.7bn from US long-dated debt with €0.9bn re-allocated to short-dated debt.
Fixed income ESG strategies gained €2.1bn, around one third of the total allocation in September. Investors added €1.2bn to investment-grade corporate debt and €0.5bn to government debt. The fixed income ESG allocation was higher than that for equities because it is a less developed market.
Source: ETFWorld
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