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Monthly European ETF Market Trends - April 2016 in brief

European ETF Market flows were relatively limited in April 2016. NET NEW ASSETS (NNA) during the month amounted to EUR2.3bn. Year to date NNA amount to EUR8bn, representing only a quarter of what was collected in the four first months of 2015.

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European ETF Market flows were relatively limited in April 2016. NET NEW ASSETS (NNA) during the month amounted to EUR2.3bn. Year to date NNA amount to EUR8bn, representing only a quarter of what was collected in the four first months of 2015. Total Assets under Management are down 1% vs. the end of 2015, reaching EUR446bn, and including a limited market impact (-2.3% [1]). Emerging markets and corporate bond ETFs continue to be the main beneficiary sustained by the commodity price rebound and accommodative monetary policies.

  • Equity ETFs continued to see outflows at EUR1.9bn for the third consecutive month. Year to date Equity ETF outflows amount to EUR5bn. European and Asia equity ETFs were the most impacted by these outflows as volatility remains high and inflation is still not picking up. European Equity ETF outflows reached a one year record high at -EUR4bn and totaled -EUR6.4bn year to date. Asia equity outflows also reached a one year record high at -EUR918M and -EUR2.7bn ytd. On the other hand, US equity ETFs rebounded at EUR1.4bn as the mild recovery was supported by the Fed policy. Emerging markets flows continued to be sustained by China‘s positive dynamics and higher commodity prices. They reached a one year record high at EUR1.7bn with inflows mainly focused on broad indices. Worth noting were some flows on China ETFs of EUR148M, a one year record high. On the Smart beta front, Minimum volatility strategies continued to see high inflows of EUR496M, close to last month’s record high in a uncertain economic environment.
  • Fixed income ETF inflows are still sustained at EUR4bn. These fixed income flows mainly concerned Corporate Bond ETFs at EUR3bn. Both IG and High yield segments benefited from the support of the announced ECB asset purchases, with respectively EUR2.4bn and EUR573M of inflows. Emerging Market Govies ETFs were also positively impacted by the more favorable environment for Emerging Markets with inflows at a one year record high of EUR1.2bn. Worth keeping in mind, Inflation linked ETF flows were still sustained at EUR532M.
  • Commodities flows continued their positive trend at EUR186M mainly concentrated on broad indices backed by increasing commodity prices.

Lyxor Research , May 12

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Footnotes

[1] 75% of MSCI ACWI NTR -3.53% and 25% of the JPM Global Aggregate +1.26% between 31/12/15 and 29/04/16 in EUR

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