European ETF Inflows Continued In August 

Shanny Basar

Exchange-traded funds and products listed in Europe had their third largest monthly inflows in August despite the turmoil in the market.

Last month there were falls in China’s stock markets and the US S&P 500 index ended August down 6%.

However ETFs/ETPs listed in Europe still gathered $11.5bn in net new assets last month making it the third best month for inflows and marking the eleventh consecutive month of positive net flows, according to consultancy ETFGI’s preliminary ETF and ETP global insights report.

In the first eight months of this year global ETFs/ETPs gathered a record $219.7bn of net new assets. Europe contributed $59.7bn, beating the previous record in the first eight months of last year by 17%. In August equities had the largest net inflows of $7.8bn, followed by fixed income with $2.3bn and then commodities with $406m, maintaining the year-to-date trend.

In the first eight months of this year BlackRock’s iShares gathered the largest net ETF/ETP inflows in Europe of $20.9bn, followed by Deutsche Bank’s db x-trackers with $9.3bn. Societe Generale’s Lyxor AM was third with $8.3bn, then UBS ETFs with $6.5bn and Vanguard with $3.3bn in net inflows according to ETFGI.

iShares accounted for 49.5% of the overall assets under management in European ETFs, far ahead of db x-trackers and Lyxor according to data provider Lipper. This week Lipper published  its review of the European ETF market for the first half of this year.

Lipper said the ten top promoters accounted for 93.8% of overall assets under management in the European ETF industry. The other 35 fund promoters with at least one ETF for sale in Europe accounted for only 6.2% of overall assets under management.

Detlef Glow, head of Lipper research for Europe, Middle East and Africa, said in the report: “Since the flows of the ten top promoters accounted for 100.27% of the overall estimated net flows into ETFs in Europe, it is clear that some of the 45 promoters (13) faced outflows (-€0.8 bn in total) over the course of the first six months of 2015.”

Assets under management in the European ETF industry rose from €370.1bn to €445bn in the first six months of this year according to Lipper. Glow said the increase was driven mainly by the performance of the underlying markets, €38.3bn, while net sales contributed €36.6bn.

WisdomTree Europe said in a statement that the short and leverage ETP specialist had reached an all-time high of $503m of assets under management as of 31 August following a week of record trading volumes.

European short and leverage ETPs had record turnover recently, led by oil funds according to WisdomTree Europe. In the last week of August as WTI, the benchmark oil price, surged 29% the Boost Crude Oil 3x Leverage Daily ETP rose by 101% and assets under management reached a record $216m.

Nik Bienkowski, co-chief executive of WisdomTree Europe, said in a statement: “Boost’s total assets under management more than tripled in the past year from $130m to $503m. Trading volumes have also been on the increase, topping $3bn in notional turnover in August having risen from just over $500m the same time last year.”

Featured image by Comugnero Silvana/Dollar Photo Club

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