European ETFs attracted USD33.5 billion in net new assets (NNA) for Q3 2023, an increase of USD2.0 billion versus Q2 2023, according to Invesco’s European Demand Monitor.
The firm writes that while the quarter saw a difficult period for risk assets, with a 2.1 per cent drop in EMEA ETF AUM, this was driven by market moves and masked a positive underlying picture for ETF flows.
The Q3 drop in ETF assets was driven by a weighted average 4.1 per cent drop in market prices across all assets. However, given the impact of strong net inflows, total AUM finished the quarter at USD1.59 trillion, up 12.4 per cent year-to-date.
Equity flows resumed their leading position, with USD21.9 billion of inflows in the quarter, accounting for two thirds of total NNA, but still slightly below their 69 per cent market share in AUM. This remains a strong year for fixed income ETF flows; Q3 saw USD14.8 billion of inflows (44 per cent share), bringing year-to-date flows to USD50.9 billion (47 per cent share). Commodity products experienced USD3.3 billion net outflows in the quarter.
