European ETF market nets €8bn in Q2

Data published by Morningstar suggests the European ETF market attracted some €8bn in net flows through the second quarter, despite the uncertainties sparked by the Brexit referendum.

The quarterly total was a decrease when measured against the €11bn net inflows during the first quarter of 2016. However, total asets of some €482.4bn by the end of the period represented a 4.2% increase against the end of the previous quarter.

Fixed income and commodities, particularly gold, attracted most of the net inflows through the period covered by the data. Fixed income ETFs attracted some €6.75bn, and commodities ETFs €3.3bn. However, equity ETFs saw net withdrawals of €2.7bn.

In other key findings from the data, Morningstar noted that so-called smart beta or ‘strategic beta’ attracted €2.16bn of net inflows through the second quarter, representing some 27% of the total inflows for the European ETF market.

Meanwhile, the performance of commodities in the first half was the best recorded so far by Morningstar; it said that the returns over the period were better even than those seen in 2012 at the peak of the eurozone debt crisis, when investors rushed to gold.

In terms of providers, iShares has continued to see strong net inflows, but db X-trackers and Lyxor have “lost market share to competitors”, according to Morningstar.

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