Consultancy ETFGI has calculated that assets invested in ETFs and ETPs listed in Europe reached some $682bn (€599.5bn) at the end of May, which represents another new record high following that set just the previous month of some $658bn (€578.4bn).
On a year-to-date basis to the end of May, assets increased by 19.1%, from $572bn to $682bn, ETFGI said.
Asset values were driven by continued gains in US markets, with equity sectors such as US information technology and utilities up 4% over the month of May. International markets also did well, with the S&P Developed Ex-U.S. BMI and the S&P Emerging BMI up 4% and 2%, respectively, said Deborah Fuhr, managing partner at ETFGI, but she added: “Political risks remain a focus for investors – the ability of the Trump administration to move forward on policy goals and hearings on Capitol Hill, the UK election, North Korea is still an area of concern and the potential Italian election later this year is raising concerns similar to those raised before the French election.”
According to ETFGI’s data, the European industry by the end of May had 2,276 ETFs/ETPs, with 7,157 listings, from 59 providers listed on 27 exchanges.
Net inflows to these products reached $12.65bn (€11.1bn) through the month, marking the 33rd month of positive net inflows. On a year-to-date basis, flows were $53.21bn (€46.8bn). The biggest share of the monthly net inflows in May went to equity products, some $8.06bn. Of this inflow, some $4.28bn went to European equity products, some $1.88bn to US equity, and some $1.55bn to EM equity. In contrast, North American equity products saw net outflows of $229m.
On the fixed income side, net inflows stood at $3.52bn in May. However, on a year-to-date basis, the figure of $12.38bn is less than the $16.15bn seen at the same point last year (€10.8bn vs €14.2bn). Of the May total, corporate bond products attracted $1.97bn, EM bond products $1.13bn and government bond producgts $725m. Inflation focused products saw net outflows of $619m.
Commodity ETFs/ETPs saw net inflows of $1.12bn in May.
By provider, iShares achieved the biggest net inflows at $6.25bn (€5.5bn), with db x/db ETC on $1.64bn and UBS ETFs on $1.49bn (€1.44bn, €1.3bn)
A similar pattern has been seen in year-t0-date inflows, with iShares gathering $16.29bn, UBS ETFs $6.55bn, and Lyxor AM $6.32bn, the ETFGI data suggests.