ETF promoters in Europe enjoyed estimated net inflows (+EUR7.7 billion) for May 2023, according to Refintiv Lipper figures. Assets under management in the European ETF industry increased over the course of May to EUR1.37 trillion.
Bond ETFs (+EUR4.3 billion) posted the highest estimated net inflows in the European ETF industry for May. The best-selling Lipper global classification for May was Equity Global (+EUR2.6 billion), followed by Bond EUR Corporates (+EUR1.3 billion) and Bond EMU Government (+EUR1.1 billion).
iShares was the best-selling ETF promoter in Europe for May (+EUR4.5 billion), ahead of BNP Paribas (+EUR1.2 billion) and Vanguard (+EUR1.2 billion).
The 10 best-selling funds gathered estimated net inflows of EUR4.6 billion for May. The best-selling ETF for April was Xtrackers II EUR Overnight Rate Swap UCITS ETF 1 C, which enjoyed estimated net inflows of EUR0.8 billion.
Detlef Glow, Head of EMEA Research at LSEG Lipper, says: “The European ETF industry enjoyed inflows over the course of May 2023. These inflows occurred in a further unstable market environment in which some asset classes showed positive results, while others performed negatively over the course of the month. The market sentiment was still driven by hopes that central banks, especially the US Federal Reserve, may have reached the last phase of their fight against the high and further increasing inflation rates and may, therefore, start to keep interest rates at least stable quite soon.”
Glow also states: “Some investors already expect that there might be room for decreasing interest rates later this year. Nevertheless, there are still some concerns about geopolitical tensions, and the normalisation of the disrupted delivery chains, as well as a still possible recession in the US and other major economies around the globe. These fears are raised by inverted yield curves which are seen as an early indicator for a possible recession.”