Monthly European ETF Market Trends for February 2015

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European ETF market flows for February 2015 came very
close to last month’s three-year record high. Net New Assets
(NNA) over the month totalled EUR 10.4 billion. Total Assets under
Management are up 17% vs. the end of 2014, reaching EUR 424
billion, and including a significant market impact (+6.8%[[MSCI ACWI +6.8% between 31/12/14 and 30/01/15 in EUR NTR.]]). ETFs from
all the main asset classes saw close to three-year record-high
inflows in a more risk-on environment.

• Equity ETF inflows were also close to January 2015’s three-year record high,
  standing at EUR 6.2 billion. The QE outlook in Europe drove investors to favour European
  equity ETFs, which collected more than EUR 5.3 billion. Conversely, US equity ETFs
  registered their first month of outflows in three years, totalling EUR 682 million. Interestingly,
  in an environment characterised by reduced deflationary fears and a recovery of oil prices,
  emerging equity ETFs rallied with inflows of EUR 568 million. This follows two months of
  significant outflows and mainly concerned Indian ETFs and Global MSCI exposure.

• Fixed income ETF inflows were also close to January 2015’s three-year record
  high, standing at EUR 3.9 billion. Interestingly, these fixed income inflows affected all
  ETF categories. European Govies and corporate bonds continue to attract inflows thanks
  to the ECB’s QE programme, collecting EUR 711 million and EUR 1.2 billion respectively.
  High yield ETFs benefited from investors’ hunt for yield and from the eurozone equity
  market recovery to record three-year record-high inflows of EUR 1.2 billion. This hunt for
  yield has also led to a return of inflows for EM debt ETFs, which collected EUR 711 million.

• Commodity flows recovered in February 2015 to total EUR 226 million, most of which
  can be accounted for by positive flows on broad ETFs as oil prices picked up.