European ETFs suffer 28% drop in inflows in Q2 2023

European ETFs attracted €28.1bn in the second quarter of 2023, down from €38.9bn in the first three months of the year, according to Morningstar Research data. Assets under management in ETFs and ETCs, however, continued to grow from €1.4trn in Q1 to €1.5trn in Q2. Of these, 68% were invested in equities, 23% in bonds and 7% in commodities. The slowdown in flows was largely driven by lower appetite for equity market exposure, Morningstar Research found. Despite this, flows into equity ETFs remained positive over the period at €12.7bn, though down 42% from Q1. Standalone US large-ca...