Net new assets in the European ETF market slowed again last month, from the €3.7bn we saw in April to €1.8bn in May.
Net new assets in the European ETF market slowed again last month, from the €3.7bn we saw in April to €1.8bn in May. This was largely due to a significant decrease in fixed income ETF inflows (€0.5bn from €4.1bn). Equity ETFs experienced some very modest outflows (€-15m).
Meanwhile, flows into commodity ETFs were very slightly positive and extremely similar to those observed in April (€46m). Smart beta ETFs collected €0.4bn. The biggest winners for May were ESG ETFs. They collected €0.9bn inflows, driven by broad strategies.
As for big picture trends, the growing impact of ESG investing is ever more apparent. In our view, investors are more deeply integrating environmental, social, and governance factors into their investment processes—seeking to make a measurable, sustainable impact alongside generating a financial return. For an increasing number of investors, the two are becoming inextricably interlinked.
Learn about the story behind the numbers with our full breakdown.