ETFs and ETPs listed in Europe gathered net inflows of USD3.93 billion during December, bringing 2018 net inflows to USD56.72 billion, according to ETFGI’s December 2018 European ETF and ETP industry landscape insights report.
Assets invested in the European ETF/ETP industry finished the month down 3.22 per cent, from USD794 billion at the end of November, to USD768 billion.
“The end of 2018 saw the trend in developed markets reverse, and although arguably predictable, the severity left many pundits scratching their heads,” saysDeborah Fuhr, managing partner and founder of ETFGI. This end of year stress has widely been attributed to the disruption caused by trade disputes feeding into economic data, and the view policy makers are not going to be quite as accommodating as initially expected. The S&P 500 returned -9.03 per cent during December, and down -4.38 per cent for 2018. Developed markets ex-US fell -4.62 per cent during December, led by Japan and Canada, bringing the yearly return to -13.21 per cent. Relatively speaking, EM and FM fared the month better, returning -2.68 per cent and -3.15 per cent, finishing 2018 -13.53 per cent and -11.82 per cent, respectively.”
At the end of December 2018, the European ETF/ETP industry had 2,322 ETFs/ETPs, an 11.90 per cent increase over 2017, from 70 providers listed on 28 exchanges. European Emerging and Frontier markets saw strong product growth throughout 2018, with 58 new ETFs/ETPs.
Assets invested in ETFs/ETPs listed in Europe decreased by 3.22 per cent, from USD794 billion at the end of November 2018, to USD768 billion at the end of December due to the market moves being greater than the USD3.93 billion in net inflows. By the end of the year, assets invested in the European ETF/ETP industry were down 4.25 per cent compared to that of 2017, falling from USD802 billion to USD768 billion.
Equity ETFs/ETPs listed in Europe saw net outflows of USD1.51 billion in December, bringing net inflows for 2018 to USD35.44 billion, considerably less than the USD71.03 billion in net inflows equity products attracted in 2017. Fixed Income ETFs and ETPs listed in Europe saw net inflows of USD5.05 billion in December, bringing net inflows for 2018 to USD19.67 billion, less than the USD25 billion in net inflows seen in 2017.
Substantial inflows during December can be attributed to the top 20 ETFs by net new assets, which collectively gathered USD7.91 billion. iShares Core MSCI World UCITS ETF-D (IWDG LN) gathered USD1.02 billion, the largest net inflow in December.