European ETF industry breaks 26-month streak of net inflows

The European exchange-traded fund industry saw $522 million in net outflows from ETFs and other exchange-traded products in June, ending a 26-month streak of net inflows, ETFGI, based in London.

The June capital outflows brought year-to-date net inflows into European-listed ETFs/ETPs to $68.2 billion, according to ETFGI, an independent research and advisory firm that covers the global market. ETFs/ETPs.

“Investors are concerned about the humanitarian, political and economic impact of the war in Ukraine, the impact of inflation, central bank policy, political uncertainty in the UK and rising COVID infections and (hospitalization) rates,” said Deborah Fuhr, managing partner. , founder and owner of ETFGI, in an email on Monday.

Still, that $68.17 billion in net inflows marked the second-highest record for a first half for European-listed ETFs/ETPs, falling below the $111.97 billion in net inflows recorded in the first half of 2021, according to ETFGI.

In June, assets invested in the European ETF/ETP sector fell to $1.37 trillion, down more than 7% from $1.48 trillion at the end of May, ETFGI said.

European-listed equity ETFs/ETPs saw net inflows of $2.99 ​​billion in June, bringing year-to-date net inflows to $50 billion, down from $86.99 billion dollars of net inflows that equity products had attracted in the first half of 2021, ETFGI said.

Fixed income ETFs/ETPs saw $1.7 billion in net outflows in June, ETFGI said. This brought their net inflows for the year through June to $11.35 billion, less than the $16.7 billion in net inflows fixed income products had attracted in the first half of 2021. .

European-listed commodity ETFs/ETPs saw net outflows of $1.52 billion in June. Active ETFs/ETPs also reported net outflows, losing $325 million for the month.

Meanwhile, ETFGI reported on Monday that net inflows into US-listed ETFs/ETPs totaled $44.05 billion in June, bringing year-to-date net inflows to 307.5. billions of dollars. According to ETFGI, that $307.5 billion in net inflows into U.S.-listed ETFs/ETPs ranks as the highest second half on record behind $472.2 billion in the first half of 2021.

“ETFs/ETPs continue to be a preferred packaging for investors to implement asset allocation,” Ms. Fuhr said of the US flow numbers.

Mary I. Bruner