Exchange traded funds (ETFs) – and other index-linked products – gathered US$1.46bn in net inflows in Europe during March 2018, the lowest monthly amount since June 2015 when net inflows were $882.99m, according to research and consultancy firm ETFGI.
The data supports Last Word research that suggests the appetite of European fund selectors for index-tracking products dipped during the first quarter as volatility shook the markets.
Year-to-date net inflows for 2018 reached $27.4bn at the end of March which is less than the $35.37bn in net inflows at this point last year.
Assets invested in European-listed ETFs/ETPs fell by $6.26bn or 0.75% during March 2018, according to ETFGI.
At the end of March 2018, the European ETF industry had 1,654 ETFs, with 6,257 listings, assets of $784.89bn, from 55 providers on 25 exchanges in 22 countries. At the end of March 2018, the European ETF/ETP industry had 2,302 ETFs/ETPs, with 7,515 listings, assets of $825.76bn, from 65 providers on 26 exchanges in 22 countries.
March 2018 also marked the 42nd consecutive month of net inflows into ETFs/ETPs listed in Europe. The $1.46bn gathered during the month was 87.13% less than the $11.36bn in net inflows during the same month last year.
The majority of net new inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $14.02bn during 2018.
The iShares $ Treasury Bond 7-10yr UCITS ETF (IBTM LN) on its own accounted for net inflows of $1.30 Bn.
Similarly, the top 10 ETPs by net new assets collectively gathered $1.09bn year-to-date during 2018
Equity ETFs/ETPs listed in Europe gathered net inflows of $1.53bn during March, bringing net inflows for 2018 to $22.65bn, which is slightly greater than the $21.23bn in net inflows at this point last year. Fixed income ETFs and ETPs suffered net outflows of $380.48m, bringing net inflows for 2018 to $3.46bn, which is less than the $7.82bn in net inflows at this point last year.
Investors have tended to invest in fixed income ETFs in March 2018, with the iShares $ Treasury Bond 7-10yr UCITS ETF (IBTM LN) and iShares J.P. Morgan EM Local Govt Bond UCITS ETF (SEML LN) capturing most of the flows.