Refinitiv: February 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 negative and 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 negative performance of the underlying markets led in combination with the estimated net inflows to decreasing assets under management (from €1,316.5 bn as of January 31, 2022, to €1,294.6 bn at the end of February). The decrease of €21.9 bn for February was driven by the performance of the underlying markets (-€31.1 bn), while estimated net sales contributed €9.1 bn to the assets under management. It was not surprising equity funds (€933.5 bn) held the majority of assets, followed by bond funds (€310.4 bn), commodities products (€37.3 bn), alternative UCITS products (€6.9 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, February 28, 2022
Source: Refinitiv Lipper
Fund Flows by Asset Type
The European ETF industry enjoyed healthy estimated net inflows for February (+€9.1 bn) which were below the rolling 12-month average (€16.3 bn).
The inflows in the European ETF industry for February were driven by equity ETFs (+€6.4bn), followed by commodities ETFs (+€1.0 bn), bond ETFs (+€1.0 bn), alternative UCITS ETFs (+€0.5 bn), money market ETFs (+€0.3 bn), mixed-assets ETFs (+€0.03 bn), and “other” ETFs (-€0.01 bn).
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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