The European ETF market saw huge growth in assets under management for cash and bond ETFs throughout 2008, according to according to Société Générale’s Lyxor
The European ETF market saw huge growth in assets under management for cash and bond ETFs throughout 2008, according to according to Société Générale’s Lyxor Asset Management subsidiary.
Assets under management in cash ETFs increased from around EUR2bn at the end of December 2007 to EUR8.6bn 12 months later, an increase of 326 per cent.
The percentage of assets under management in the European ETF market held in cash ETFs increased from 2.36 per cent to 9.46 per cent during this period.
The value of assets under management in European-listed bond ETFs grew from EUR11.67bn in December 2007 to almost EUR19bn in December 2008.
Equity ETFs remained resilient in 2008, still representing the majority of assets under management, 66.47 per cent of total assets under management or EUR60.6bn as at the end of December 2008. This is a decrease of 13 per cent compared to December 2007, but, in contrast, the MSCI World index dropped by 42.08 per cent over the same period.
Equity ETFs continued to collect assets in 2008, benefiting from a shift from active to passive management strategies.
ETFs linked to strategy indices, including short and leveraged ETFs, saw the biggest rise in the Equity ETF sector with a growth of 117 per cent in assets under management since December 2007.
Total European ETF assets under management grew from EUR85bn at the end of 2007 to EUR91bn the following year.