07.18.2022

ETFs in Europe Have First Net Outflows After 26 months

07.18.2022
ETFs in Europe Have First Net Outflows After 26 months

ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported  reports the ETFs industry in Europe reported net outflows of US$522 million in June after 26 months of consecutive net inflows, bringing year-to-date net inflows to US$68.17 billion. During the month, assets invested in the European ETF/ETP industry decreased by 7.3%, from US$1.48 trillion at the end of May to US$1.37 trillion, according to ETFGI’s June 2022 European ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)

Highlights

  • Assets of $1.37 Tn invested in ETFs and ETPs listed in Europe at the end of H1 2022.
  • Assets decreased 14.0% in H1 2022, going from $1.60 Tn at end of 2021 to $1.37 Tn.
  • Net outflows of $522 Mn in June 2022 after 26 consecutive months of net inflows.
  • Net inflows of $68.17 Bn are the second highest on record in H1 2022, after net inflows of
    $111.97 Bn in H1 2021.
  • $149.84 Bn in net inflows gathered in the past 12 months.
  • 1st month of net outflows.
  • Equity ETFs and ETPs listed in the Europe gathered net inflows of $50.03 Bn in H1 2022, which are the second highest on record after net inflows of $86.99 Bn in H1 2021.

“The S&P 500 decreased by 8.25% in June and is down by 19.96% in the first half of 2022. Developed markets excluding the US decreased by 9.94% in June and are down 20.09% in H1 2022. Luxembourg (down 20.27%) and Korea (down 17.54%) saw the largest decreases amongst the developed markets in June, while Hong Kong (up 1.40%) saw the largest increase. Emerging markets decreased by 5.19% during June and are down 16.12% in H1 2022. Colombia (down 24.12%) and Brazil (down 20.14%) saw the largest decreases amongst emerging markets in June, while China (up 6.53%) saw the largest increase.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

The European ETFs industry had 2,774 products, assets of $1.37 Tn, from 91 providers on 29 exchanges in 24 countries at the end of June.

During June, ETFs/ETPs reported net outflows of $522 Mn. Equity ETFs/ETPs gathered net inflows of $2.99 Bn over June, bringing YTD net inflows to $50.03 Bn, lower than the $86.99 Bn in net inflows equity products had attracted at this point in 2021. Fixed income ETFs/ETPs had net outflows of $1.69 Bn during June, bringing net inflows for the year through June 2022 to $11.35 Bn, lower than the $16.67 Bn in net inflows fixed income products had attracted by the end of June 2021. Commodities ETFs/ETPs reported net outflows of $1.52 Bn during June, bringing YTD net inflows to $6.13 Bn, higher than the $2.60 Bn in net inflows commodities products had reported year to date in 2021. Active ETFs/ETPs reported net outflows of $325 Mn over the month, gathering net inflows for the year in Europe of $389 Mn, lower than the $3.37 Bn in net inflows active products had reported in the first half of 2021.

Substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $8.31 Bn during June. Invesco US Treasury 7-10 Year UCITS ETF (TREX LN) gathered $940.95 Mn, the largest individual net inflow.

Source: ETFGI

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