European ETF Assets Reach Record 

Terry Flanagan

Assets in exchange-traded funds and products listed in Europe reached a high of $477.4bn as year-to-date net new inflows overtook the previous full year record set in 2012.

In the first eight months of this year European ETFs gathered net new assets of $50.4bn, $17.1bn more than than the previous full year record set in 2012, according to preliminary data from research provider ETFGI’s Global ETF and ETP industry insights report.

In August European ETFs gathered net inflows of $7.7bn. The largest net inflows of $4.4bn were into equities, followed by fixed income with $2.8bn and commodities at $132m.

Deborah Fuhr, managing partner at ETFGI, said in a statement: “In August investors invested net new money into an array of equity, fixed income and commodity exposures due to concerns over the situations in Ukraine and Gaza. The S&P 500 was up 4% in August and closed above the 2,000 threshold for the first time on August 26.”

BlackRock’s iShares gathered the largest net ETF inflows in Europe in August with $3.3bn, followed by Vanguard with $1.3bn and Deutsche Bank’s DB x Trackers with $1.1bn.

ETFGI said iShares is the largest European ETF provider with assets of $223.4bn, reflecting a 46.8% market share. Deutsche Bank is second with $56bn and 11.7% market share, with Societe Generale’s Lyxor AM in third with $49bn and a market share of 10.3%.

“The top three ETF/ETP providers, out of 50, account for 68.8% of European ETF/ETP assets, while the remaining 47 providers each have less than 5% market share,” added ETFGI.

Michael John Lytle, chief development officer and a founding partner at Source, a European ETF provide, told Markets Media last week that strong inflows should continue for the rest of this year.

“ETF activity is heavily affected by investor sentiment. The macro environment has the biggest singular impact on ETF inflows,” Lytle added. “If it remains positive then ETF inflows should continue at the near record levels of the first half of the year.”

Featured image via Comugnero Silvana/Dollar Photo Club

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