Vincent Denoiseux, Head of ETF Research and Solutions at Lyxor ETF has published a report that reveals ESG ETF inflows were strong over the month of May, with EUR2.4 billion flowing in, creating a record year so far for ESG ETFs, and assets up at EUR10.6 billion.
Denoiseux comments that this comes with a backdrop of governments around the world starting a gradual easing of lockdown restrictions to revive economic activity while controlling the spread of Covid-19. Risk asset performance also benefited from new stimulus measures announced in Europe.
His research shows that fixed Income funds and ETFs gathered a combined EUR38.0 billion in net new assets. EUR31.8 billion went into open-ended funds and EUR6.2 billion to ETFs.
Equity funds and ETFs had more muted flows, Lyxor reports, despite the positive performance of their underlying indices. Equity funds gathered EUR9.3 billion, with EUR10.1 billion into open-ended funds (predominantly Sector Funds) and Equity ETF outflows of EUR-0.8 billion.
Smart Beta ETF outflows increased to EUR-1.0bn. Smart Beta ETFs are now suffering their worst outflows in five years, at EUR-4.1 billion year to date, Denoiseux says.