The European exchange-traded fund (ETF) industry recorded net inflows of €19.5bn in September, exceeding the rolling 12-month average and driven largely by equity ETFs, according to the latest data.
The European ETF Market Report from the Lipper team at Refinitiv showed that equity ETFs had the highest net inflows in the European ETF industry for the month, at €12.8bn, and said the flows could be seen as a sign that European investors had returned to the market after a massive sell-off of equity ETFs in August.
Bond ETFs were the asset type with the second highest, recording net inflows of €5.6bn, followed by alternative UCITS ETFs with net inflows of €0.5bn, while the only asset type to record net outflows was ‘Other' ETFs (-€0.003bn).
Combined with the positive performance of the underlying markets, these inflows saw the assets under management (AUM) of the European ETF industry rise by €38.5bn to €795.5bn at the end of September.
This drove overall net flows to €62.3bn for 2019.
To examine this in greater detail, Lipper Global Classifications split the European ETF market into 178 peer groups. The highest AUM were held by funds classified as equity US (€150.3bn), which is almost double that of the next largest classification, equity global (€80.3bn). The five equity peer groups comprise 45.07% of the overall AUM in the European ETF segment.
The top 19 of the 178 peer groups account for more than two-thirds (71.21%), or €566.4 bn, of the overall AUM.
The report said it was "not surprising" that equity funds dominated the table of the 10 best-selling peer groups by net flows, with equity global (€5.2bn), equity US (€4.3bn) and equity eurozone (€1.9bn) the best-selling global classifications in September.
Once again, the market was dominated by a few funds, with the 10 best-selling classifications responsible for €17.9bn of the total.
This theme continues among the promoters, with iShares (€372bn) alone accounting for 46.76% of overall AUM, far ahead of Xtrackers (€84.1bn) in second place.
Further to this, eight of the 10 largest promoters by AUM ranked in the top 10 best-selling for September. UBS ETF took the top spot with €7.7bn, ahead of iShares at €4.9bn and Xtrackers at €3.2bn.
Of the 2,895 instruments (primary funds and convenience share classes) listed in the Lipper database at the end of September, only 174 held assets in excess of $1bn and these products accounted for 61.36% of the overall assets in the European ETF industry.