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Thematic ETFs saw the second quarter of flows under EUR 1 billion since 2019

Morningstar has published a review of the Europe exchange-traded funds market for the second quarter 2022, which saw EUR 15.8 billion of flows, a 63.17% decrease from the first quarter. 

Key findings for Q2 2022 include:   

  • The European exchange-traded fund market gathered EUR 15.8 billion of flows in the second quarter of 2022, a significant decrease from the first quarter’s EUR 42.9 billion in flows.
  • Assets under management in European ETFs dropped to EUR 1.31 trillion from EUR 1.42 trillion in the first quarter, reflecting the widespread negative sentiment in financial markets over the period.
  • Flows into environmental, social, and governance ETFs amounted to EUR 6.7 billion. This represented 42% of total flows into ETFs in the second quarter. European ESG ETF assets decreased to EUR 216 billion from EUR 232 billion in the first quarter.
  • Strategic-beta ETFs netted EUR 3.4 billion, down from EUR 7.5 billion in the first quarter. The bulk of inflows were directed to dividend strategies.
  • Flows into thematic ETFs totalled EUR 0.6 billion, the second quarter of flows under EUR 1.0 billion since 2019. Assets fell to EUR 31.2 billion from EUR 35.5 billion in the first quarter.
  • IShares topped the flows league table in the second quarter with EUR 9.6 billion.

Jose Garcia-Zarate, Associate Director, Passive Strategies, comments: “Generally, we are continuing to see investors favour equity market exposures. For example, 87% of total ETF flows in the quarter, totalling EUR 13.8 billion, was directed to equity ETFs. Although in the previous quarter assets in equity ETFs decreased by EUR 85 billion, we can still identify a regular trend of favouritism toward equity market exposed ETFs. Investors pulled EUR 1.5 billion from commodities exchange-traded products after the strong showing in the first quarter when these products netted EUR 6.9 billion.”

 

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