Europe-listed ETFs gather €7.8bn in July, finds Morningstar

Aug 17th, 2017 | By | Category: ETF and Index News

Europe-listed ETFs saw net inflows of €7.8 billion in July 2017, bringing the total for 2017 to €65bn, according to data from Morningstar. While flows into Europe-listed equity ETFs posted a solid reading of €4.9bn, fixed income ETFs saw tepid demand during the month, recording flows of just €1.6bn, the second lowest monthly flows this year.

Europe-listed ETFs gather €7.8bn in July, finds Morningstar

Europe-listed ETFs gather €7.8bn in July, finds Morningstar.

Outflows from euro high-yield ETFs, along with a much-reduced demand for USD corporate bond and global emerging market bond ETFs, were clear signs of investors risk-off behaviour during July, amid a backdrop of increasingly hawkish rhetoric from the Fed and the ECB.

Turning to equities, Morningstar data reveals European investors channelled €1.4bn into eurozone large-cap equity products during July in a continued show of confidence in the region.

Ali Masarwah, EMEA editorial director for Morningstar, commented: “European investors displayed confidence in the eurozone’s recovery in July. Most of the net new money targeted plain vanilla Euro Stoxx 50 trackers with iShares enjoying the highest flows. The positive sentiment towards eurozone is also reflected by the record inflows sent to financials ETFs, most of which track eurozone banks barometers.”

iShares topped the provider list for asset flows into Europe-listed ETFs during the month, drawing in net flows of €3.5bn, of which €2.4bn went into equity ETFs and €850m flowed into bond ETFs, well below the monthly levels seen so far this year. Source saw the highest outflows during July on the back of €510 million leaving its broad commodity ETFs.

Swiss-domiciled UBS ETF (CH) Gold was the most popular ETF in Europe during July. The fund is distributed only in Switzerland and achieved net inflows of €660m for the month.

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