From Morningstar: 2024-11-21 07:43:33

The European exchange-traded fund and exchange-traded commodities market saw record net inflows of EUR 27.3 billion in October 2024, totaling EUR 188.3 billion for the year so far. Assets under management surpassed EUR 2 trillion, with 71% in equity strategies and 21.1% in bond ETFs.

The trend towards passive investing is driven by low-cost solutions and the popularity of ETFs among passive investors. In 2024, investors heavily favored US equity products, with two-thirds of flows going into US single market or Global Developed equity ETFs. Fixed income ETFs are also gaining ground, with an 11.5% organic growth rate in 2024.

Fixed-term bond ETFs have attracted investors looking to lock in high yields before rate cuts. While the growth of fixed income ETFs is a long-term goal for providers, there is still a need for education to convince fixed income investors of the benefits of using ETFs. Bond investors who try ETFs often become supporters of the wrapper’s simplicity.



Read more at Morningstar: 2024 Is Already a Record Year for ETFs