Our other sites

  • Lyxor ETF

    A pioneer in the ETF market since 2001, Lyxor is one of Europe's largest ETF providers, offering investors more than 220 ways to explore the markets.
  • Lyxor FUNDS

    The Lyxorfunds website allows you to find out more about the Lyxor funds range, its documentation, market and product news.
  • MYLyxor MAP

    MyLyxorMAP website is dedicated to the Lyxor Managed Account Platform (MAP). It offers access to a comprehensive range of managed accounts, providing transparency, liquidity and independent risk management. It may also include other funds managed by Lyxor.
  • Lyxor JAPAN

    Corporate information on Lyxor Asset Management Japan Co. Ltd. , its publicly offered domestic funds, and general information in Japanese about Lyxor.
Date
Catégorie
Research

2018: ETFs Endure In Challenging Times

Premier paragraphe

This week, Marlène Hassine Konqui, Head of ETF Research at Lyxor, fields questions about how ETFs fared this past year and what lies ahead.

Image détail
2018: ETFs Endure In Challenging Times
Contenu

What was the overall picture of ETF flows in 2018?

 In a chaotic year with uncertainties of all kinds on the rise, worldwide ETF flows dropped considerably from their 2017 record highs. Yet in Europe, active managers suffered most, allowing passive flows to significantly narrow the gap with their active peers. Passive flows posted their third highest level in terms of NNA , right after 2017 and 2015, showing their resilience in turbulent markets with nearly all asset classes closing 2018 in negative territory.

How did investors allocate flows among the various asset classes in the European market?

Among equities, the only winners were US equities where inflows rose by 54%, while eurozone equity ETFs were harmed by specific economic and political uncertainties. In fixed income, government bonds was the only category that saw increased inflows compared with 2017, as government bonds played the role of safe havens amid fears of trade wars and rising geopolitical tensions.


What to expect in ETF flows in 2019 ? 

Lower economic growth should lead to slightly lesser flows into developed market ETFs. We expect the rotation toward emerging markets to continue, as long as the Fed maintains its dovish stance. Smart beta AUM should grow in a more mature phase of the cycle and increasing volatility.  ESG products should continue to benefit from growing investor interest. In the fixed income space, demand for inflation-linked ETFs should endure given the medium term inflation outlook.

FIND OUT MORE