The European ETFs industry has achieved a new milestone, ETFGI, a research and consulting firm, has reported. Assets under management have soared to an all-time high of $1.69trn at the end of July 2023.
This of $1.63trn set in June 2023. The rise in assets from $1.42trn at the end of 2022 to its current value marks an impressive 18.9% growth year-to-date in 2023.
The growth trajectory is supported by consistent positive inflows, with July witnessing net inflows of $14.96bn. This has brought the total year-to-date net inflows to a staggering $87.11bn.
Notably, this is the second-highest YTD inflow, only behind the record inflow of $127.08bn in 2021. The industry has now enjoyed its tenth consecutive month of net inflows.
Diving deeper into the types of ETFs, equity ETFs and exchange-traded products (ETPs) listed in Europe have experienced substantial inflows. Their YTD net inflows reached $43.58bn in 2023. Though this figure lags behind the $47.93bn inflows of 2022 and the record $93.86bn in 2021, it still represents robust demand.
Conversely, fixed income ETFs have outpaced their previous year’s record by registering net inflows of $41.85bn YTD in 2023, a significant increase from the $15.29bn recorded in 2022.
On the other hand, commodities ETFs/ETPs reported a net outflow of $1.56bn in July, resulting in a YTD net outflow of $2.65bn. This is in stark contrast to the net inflow of $711m witnessed in 2022.
July’s performance also highlighted the growth in active ETFs. These ETFs saw net inflows of $797m during the month, taking the YTD net inflows to $4.21bn. This YTD figure greatly surpasses the $748m recorded in 2022.
This performance further exemplifies the buoyancy and resilience of the European ETFs sector, and the confidence investors have in certain products, even in a fluctuating market environment. As the industry continues its upward trajectory, these trends and key players will undoubtedly shape the landscape of European ETFs in the months to come.
To end with a snapshot of the broader industry: As of the end of July, the European ETFs industry boasts of 2,986 products, 11,999 listings by 101 providers across 29 exchanges in 24 countries, ETFGI stated.