September’s ETF Money Monitor report from Vincent Denoiseux, Head of ETF Research and Solutions at Lyxor ETF, reveals that September was a challenging month for European investors.
Lyxor ETF writes that European ETP and open-ended fund investors faced increased market volatility on greater concerns that the recovery may be stalling at a time of more persistent inflationary pressures. The S&P 500 recorded its largest monthly drop in 2021; hit by higher government bond yields at the end of the month.
However, despite market volatility, ETFs proved resilient with a solid EUR13.3 billion net new assets over the month. Fixed Income and Equity ETFs accumulated EUR5.3 billion and EUR7.7 billion respectively.
ESG ETF gathered further assets with EUR3.7 billion net inflows. Flows into ESG ETFs since the beginning of the year represent almost half of total ETF flows, Lyxor ETF writes.
Smart Beta ETFs lost -EUR0.9 billion hit by further reversal out of Value and Equal-Weighted Equity exposures.
Fixed income funds and ETFs gathered a combined EUR20.4 billion in net new assets with EUR15.1 billion into open-end funds and EUR5.3 billion into ETFs, and equity ETFs and open-ended funds enjoyed EUR23.9 billion of net new assets, with EUR16.3 billion into funds and EUR7.7 billion into ETFs.
