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Investors flock to bond ETFs in June

European fund companies reported net inflows of €2.9bn during the month


European ETF providers recorded net inflows of €2.9bn in June, according to the Refinitiv European ETF Market Report for June 2019, with the highest net inflows into bond ETFs.

The level of estimated net inflows into ETFs in June stood below the monthly rolling 12-month average of €4.6bn.

Detlef Glow, Lipper’s head of EMEA research at Refinitiv and author of the report, said: “The flows into ETFs were a sign that investors had returned to the markets despite an increased volatility in stock markets globally.

“That said, it was surprising bond ETFs were again the asset type with the highest net inflows (+€6.0bn), followed by money market ETFs (+€0.9bn) and mixed-asset ETFs (+€0.05bn).”

The iShares Core € Corp Bond UCITS ETF EUR was the best-selling ETF in June. It accounted for net inflows of €1.8bn, or 60.84 per cent of the overall net inflows.

Equity ETFs faced outflows of €3.5bn – the highest outflows in the European ETF segment during the month.

Overall net flows for 2019 are +€36.1bn.

The Refinitiv report revealed the best-selling Lipper global classification for June was Bond EUR Corporates at €1.9bn, followed by Bond EUR High Yield at €1bn) and Money Market EUR at €0.9bn.

Assets under management in the European ETF industry reached €746.7bn in June, up from €721.4bn at the end of May.

According to the Refinitiv report, the increase was mainly driven by the performance of the underlying markets, while net sales contributed inflows of €2.9bn to assets under management in the European ETF segment.

iShares was the best-selling ETF provider during the month, clocking up €4.5bn, and is the largest ETF provider in Europe at €347.6bn, accounting for 46.54 per cent of overall assets under management.

Xtrackers is the second largest provider of ETFs in the region (€81.5bn), followed by Lyxor ETF (€62.4bn).