London-based data firm ETFGI reported that European exchange-traded fund assets reached a record $2.04trn in June, with significant inflows driving the growth. Photo: Shutterstock

London-based data firm ETFGI reported that European exchange-traded fund assets reached a record $2.04trn in June, with significant inflows driving the growth. Photo: Shutterstock

European ETF assets achieved a record $2.045trn last month, ETFGI reported, highlighting strong market performance and inflows.

Driven by significant investment inflows in June 2024, European exchange-traded fund assets reached a historic $2.045trn at the end of the half-year mark, revealed the research and consultancy firm ETFGI on Monday 15 July.

Growth and inflows

The industry experienced net inflows of $21.51bn in June, ETFGI said. This influx brought the year-to-date (YTD) net inflows to $103.93bn, marking the second-highest YTD net inflows on record. The highest was $111.95bn in 2021 and the third-highest was $72.14bn in 2023.

Assets in the European ETFs industry, which included exchange-traded products, increased by 12.4% since the start of 2024, rising from $1.819trn at the end of 2023 to $2.045trn at the end of June. This growth represents the 21st consecutive month of net inflows for the industry.

Market performance

Deborah Fuhr, founder and managing partner of ETFGI, said in a note that while the S&P 500 index increased by 3.59% in June and has risen 15.29% YTD in 2024, developed markets excluding the US index decreased by 1.40% in June but is up 4.60% YTD. Among developed markets, France and Portugal saw the largest decreases in June, down 7.88% and 6.39%, respectively. Emerging markets performed better, with the emerging markets index up 2.97% in June and 8.09% YTD. Taiwan and South Africa led the gains among emerging markets in June, up 10.09% and 9.91%, respectively.

ETF industry

At the end of June, the European ETFs industry comprised 3,036 products and 12,397 listings, and assets totalling $2.045trn. These were managed by 100 providers across 29 exchanges in 24 countries.

Equity ETFs were the primary drivers of inflows, attracting $16.51bn in June, bringing their YTD net inflows to $80.19bn. This is a significant increase compared to $36.50bn YTD in 2023. Fixed income ETFs reported net inflows of $2.78bn in June, with YTD net inflows totalling $23.80bn, down from $33.15bn in 2023. Commodities ETFs saw net inflows of $882.38m in June, yet they experienced YTD net outflows of $4.77bn, a greater loss than the $1.09bn in 2023. Active ETFs gathered $1.38bn in net inflows during June, totalling $5.71bn YTD, an increase from $3.39bn in 2023.

Substantial inflows were driven by the top 20 ETFs by net new assets, which collectively gathered $13.32bn in June.

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