European exchange-traded market flows were negative in September 2014, breaking a one-year sustained positive trend.
Net outflows during the month amounted to EUR2.0 billion, according to Lyxor’s latest ETF Barometer.
Total assets under management (EUR344.9 billion) are nearly flat if compared to the level at end of 14 August, benefiting from a positive equity market impact (0.92 per cent).
European and German equity ETFs, in particular, have registered record high outflows in an increasingly volatile environment. The VSTOXX was up from 14.5 per cent to 17.6 per cent between 19 and 26 September.
Equity ETFs registered significant outflows of EUR1.7 billion. In Europe, German and Eurozone equity indexations have posted high outflows respectively of -EUR2.3 billion and -EUR1.2 billion, mainly concentrated on a very limited number of ETFs.
Peripheral and small and mid cap equity ETFs in Europe have also registered outflows (-EUR325 million and -EUR269 million respectively) whereas European value indexations inflows reached a one-year record high of EUR193 million.
US and Japan indexations saw sustained inflows of EUR908 million and EUR304 million, both above one year average NNA. Emerging market equity ETFs inflows are also still sustained at EUR711 million, mainly focused on broad indexations together with some flows on Asian regional indexations.
Fixed income ETFs also registered outflows amounting to EUR170 million, reflecting a pause in the positive year-long trend.
Global corporate bond ETFs continued to be favoured by investors with EUR134 million of inflows as credit continues to offer an attractive risk reward profile. High yield indexations have continued to register outflows of EUR215m amidst fears of already very tight valuations. Net flows on emerging market debt are almost flat this month.