Refinitiv : European ETF Market October 2022

These inflows occurred in a positive market environment. Nevertheless, concerns about the high inflation rates, increasing interest rates, market turmoil in UK government bonds, geopolitical tensions, and disrupted delivery chains caused by the still ongoing COVID-19 pandemic in Europe and other parts of the world were still looming. The performance of the underlying markets led to increasing assets under management (from €1,203.3 bn as of September 30, 2022, to €1,254.1 bn at the end of October). In more detail, the increase of €50.8 bn for October was driven by the performance of the underlying markets (+€43.0 bn), while estimated net inflows contributed (+€7.8 bn) to the assets under management.

As for the overall structure of the European ETF industry, it was not surprising equity funds (€899.1 bn) held the majority of assets, followed by bond funds (€308.2 bn), commodities products (€32.7 bn), alternative UCITS products (€6.5 bn), money market funds (€4.4 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, October 31, 2022

Source: Refinitiv Lipper

Fund Flows by Asset Type

The European ETF industry enjoyed estimated net inflows (+€7.8 bn). These flows were above the rolling 12-month average (€7.0 bn).

The inflows in the European ETF industry for October were driven by bond ETFs (+€4.4bn), followed by equity ETFs (+€3.4 bn), money market ETFs (-€0.4 bn), and mixed-assets ETFs (+€0.003 bn). On the other side of the table, commodities ETFs (-€0.2 bn) faced the highest outflows for October 2022, bettered by alternative UCITS ETFs (-€0.1 bn), and ”other” ETFs (-€0.001 bn).

This flow pattern drove the estimated overall net flows to positive €7.8 bn for the month and positive €60.1 bn for the year 2022 so far.