European ETF Market flows continued their positive trend in February 2017

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Net New Assets (NNA) during this month amounted to
EUR9.4bn, nearly twice the one-year average of EUR4.9bn. Total Assets
under Management are up 7% vs. the end of 2016, reaching EUR551bn,
including a market impact of 3.9%. Both developed and emerging markets
equity and fixed income ETFs saw positive flows in a risk-on environment
supported by an upbeat picture of macroeconomic data across markets

• Equity ETFs recorded strong inflows at EUR6.1bn. Interestingly, flows concerned both
  developed and emerging markets ETFs amidst a supportive economic environment. Both US and
  European ETFs benefited from this improved situation with respectively EUR0.9bn and EUR1.3bn
  of NNA. Significant inflows into global equity ETFs also continued reflecting this increased optimism
  at EUR0.7bn. Asia Pacific equity ETFs rebounded at EUR0.9bn to reach a one-year record high.
  On the emerging markets side, flows underwent a trend reversal with positive flows of EUR0.8bn.
  Interestingly, emerging markets ETFs on broad indices saw two thirds of these flows while flows
  on emerging country ETFs continued to be sustained mainly on India. Smart Beta ETFs saw
  significant inflows at EUR1.1Bn.
  Value ETFs continued to benefit from the rotation towards more
  cyclical strategies with EUR918M of inflows, a one year record high. Fundamental strategies on
  Japanese ETFs also attracted some flows at EUR212M.

• Fixed income ETF inflows reached a 7-month record high at EUR3.2bn. Interestingly,
  these fixed income flows were mainly focused on Emerging debt and high yield ETFs.
  European govies continued to see limited flows. Flows on emerging debt were once again positive
  at EUR1.2bn as the search for yield continued. This also fueled positive flows into high yield ETFs
  with inflows at EUR427M. In an improving economic environment, flows into inflation-linked ETFs
  reached a one year record high at EUR948M. Furthermore, flows poured into short bond strategy
  ETFs at EUR365M in an environment of increasing political risk in Europe.

• Commodities ETF saw some flows at EUR209 on both broad exposures and precious metals.