Amundi writes that in the European UCITS ETF market, overall net new assets in the month of June were EUR20.0 billion, led by equities at EUR11.6 billion and fixed income with EUR7.8 billion.
Flows in the second quarter of 2025 were EUR64.0 billion, an increase on the EUR55.9 billion in Q2 last year.
Equities accounted for more than 70 per cent of overall NNA in Q2 2025 and European equity strategies were the top collector in the quarter.
Worldwide ETF flows
Global ETFs gained EUR116.3 billion in June – a similar level to May – with investors adding EUR67.6 billion to equities and EUR38.6 billion to fixed income.
There were flows of EUR41.9 billion into equities in North America ETF markets. Flows into US equities were strong but these were mainly from US-domiciled ETFs.
The most popular strategy in June was large blend – global developed equities – which gained EUR13.8 billion. Ultrashort bonds were the second most popular strategy adding EUR10.2 billion. There were outflows of EUR1.6 billion from equity energy strategies.
Equities: Investors broaden allocation
European UCITS equity ETFs added EUR11.6 billion in June, a deceleration from the previous month.
Although European equities have driven inflows in recent months, investors switched their preference in June. All country indices gained EUR3.9 billion, emerging market strategies EUR2.7 billion and world EUR2.1 billion. European equities trailed at EUR2.0 billion.
Total outflows from equal-weight strategies for the quarter were EUR3.7 billion, as US equity strategies ended the quarter with outflows of EUR100 million.
For the second quarter, European equities were the most popular strategy adding EUR15.4 billion, with world strategies at EUR11.3 billion and all country gaining EUR10.3 billion.
Industrials continued their strong run, adding EUR1.8 billion in June to take NNA for the second quarter to EUR3.9 billion. European governments’ commitment to defence and infrastructure spending has propelled the popularity of this sector. Investors withdrew EUR0.7 billion from financials in the month, taking total quarterly outflows for that sector to EUR1.5 billion.
ESG equity inflows continued to recover last month with investors adding EUR1 billion. All-country strategies added EUR1.6 billion and emerging market gained EUR0.8 billion. Investors withdrew EUR0.7 from US ESG strategies and EUR0.9 billion European ESG indices in June. In the second quarter, investors withdrew EUR3.5 billion from US ESG equity strategies taking total equity ESG outflows to EUR0.1 billion.
Fixed income: Government debt in favour
Investors allocated EUR7.8 billion to European UCITS fixed income ETFs in June, a similar level to last month, which took second-quarter inflows to EUR18.3 billion.
Government debt remained the most popular category in the month. Investors added EUR3.1 billion to this asset class in June, of which EUR1.6 billion was in multi-currency strategies. These strategies led the way in government bond NNA in the quarter, attracting EUR4.3 billion for the quarter, just ahead of euro-denominated strategies.
In June, euro-denominated debt gained EUR0.8 billion, reflecting the European Central Bank’s moves to ease policy rates.
Investor preference for multi-currency meant all maturities were the most popular duration in the three months to June.
But within US-dollar denominated debt there was a clear preference for short-dated bonds over long-dated in the second quarter. Short-duration USD government bonds gained EUR0.7 billion compared with outflows of EUR0.9 billion for long-dated debt. This could reflect investor concerns about the increase in the US budget deficit and the uncertain economic outlook.
Euro-denominated corporate debt continued to be the most popular investment grade debt category, adding EUR2.5 billion in June, which boosted the quarterly total to EUR5 billion. Investors withdrew EUR0.9 billion from US-dollar denominated corporate debt over the three months to the end of June.
ESG fixed income strategies added EUR2.3 billion in June. Investment grade corporate strategies proved most popular with NNA of EUR1.4 billion, while high yield gained EUR0.5 billion. Total fixed income ESG inflows in the second quarter were EUR3.6 billion out of total fixed income allocation of EUR18.3 billion.
