The European ETFs industry is experiencing sustained growth, according to data released on Monday 18 September 2023 by ETFGI, an independent research and consultancy firm focused on global exchange-traded fund trends. As of the end of August 2023, the industry registered net inflows of $8.95bn for the month, bringing the year-to-date net inflows to a staggering $96.05bn. This makes it the second-highest on record, following the year-to-date net inflows of $138.94bn in 2021.
In total, assets have increased by 17.8% year-to-date in 2023, rising from $1.33trn at the end of 2022 to $1.57trn. With 2,073 products listed on 29 exchanges across 24 countries, the European ETF landscape is more diverse and robust than ever.
The growth isn’t uniform across all asset classes; rather, different types of ETFs have attracted varying levels of interest from investors. According to ETFGI, equity ETFs saw net inflows of $5.25bn in August, resulting in year-to-date net inflows of $48.83bn--higher than the $44.33bn recorded for the same period in 2022.
Fixed income ETFs also performed well, reporting net inflows of $2.97bn in August, which brought the year-to-date total to $44.81bn, significantly surpassing the $20.86bn in net inflows recorded year-to-date in 2022.
In contrast, commodities ETFs and exchange-traded products (ETPs) reported net outflows of $169m during August, leading to year-to-date net outflows amounting to $2.82bn. However, this is lower than the $519m in net outflows reported for the same period in 2022.
Meanwhile, active ETFs are gaining in popularity, attracting net inflows of $1.04bn in August and accumulating year-to-date net inflows of $5.25bn, substantially higher than the $872m recorded in 2022.