{"id":80635,"date":"2019-06-20T00:56:06","date_gmt":"2019-06-19T22:56:06","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/european-etf-flows-still-slowing\/"},"modified":"2020-01-02T22:09:27","modified_gmt":"2020-01-02T21:09:27","slug":"european-etf-flows-still-slowing","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/european-etf-flows-still-slowing\/","title":{"rendered":"European ETF flows still slowing"},"content":{"rendered":"

Net new assets in the European ETF market slowed again in May to \u20ac1.8bn from the \u20ac3.7bn we saw in April.<\/p>\n

This was largely due to a significant decrease in fixed income ETF inflows (\u20ac0.5bn from \u20ac4.1bn).<\/p>\n

Equity ETFs experienced some very modest outflows (\u20ac-15m).<\/p>\n

Meanwhile, flows into commodity ETFs were very slightly positive and very similar to those we saw
\nin April (\u20ac46m). Smart beta ETFs collected \u20ac0.4bn.<\/p>\n

The biggest winners for May were ESG ETFs. They collected \u20ac0.9bn inflows, driven by broad strategies.<\/p>\n[\"-331.jpg\"Note: This report is based on the data available on 31\/05\/2019.
\n
Asset and flow data may be slightly adjusted as additional data becomes available.
\n
All categories are exclusive and sum up to the total market flows.” align=”center” \/>->https:\/\/www.next-finance.net\/IMG\/jpg\/-331.jpg]\n

ESG investing is having an impact<\/strong><\/p>\n

More than \u20ac897m flowed into ESG ETFs in May
\n2019, helping them achieve their second best
\nmonth ever. They also made up just under 50%
\nof the market\u2019s total net inflows for May. YTD
\nflows are already approaching the total inflows
\nfor the category we saw in 2018 (\u20ac3.6bn vs.
\n\u20ac4.0bn). Broad ESG products gathered almost
\nall of the inflows and, at the end of the month,
\naccounted for around 12% of all European
\nmarket flows YTD \u2013 despite only representing
\n2% of all assets under management (see graph
\nbelow).
\n\"-330.jpg\"<\/a><\/p>\n

In our view, investors are more deeply
\nintegrating environmental, social, and are seeking to make a measurable, sustainable impact alongside generating a financial return.
\nFor an increasing number of investors, the two
\nare inextricably interlinked.<\/p>\n

For now, that integration is voluntary but it may
\nbecome more systematic in time. We believe
\nESG ETFs will benefit from the greater general
\nawareness of the environmental challenges we
\nall face and the regulations that will increasingly
\nbe used to address them. Small steps have
\nalready been taken. For example, the EU\u2019s
\naction plan for \u201cFinancing Sustainable Growth\u201d
\n(released in May 2018) encourages shareholders
\nto integrate sustainability considerations into
\ntheir investment decision-making processes.