European ETF market thriving with record flows, active ETFs gaining prominence

From Morningstar: 2024-07-17 06:45:00

The European ETF market saw record flows of €53 billion in the second quarter, totaling €98 billion for the first half of the year. Active ETFs are gaining prominence, with over €6.1 billion invested in them in the first half, representing 6.3% of total ETF flows.

Investors favored US large-cap equity funds in the second quarter, driving €40.5 billion into equity ETFs. Global large-cap equity ETFs with heavy exposure to the US market, as well as single US equity ETFs like the S&P 500 trackers, were popular choices for investors.

Bond ETFs attracted €11.7 billion in the second quarter, with short and ultrashort-dated bond ETFs being top choices due to central banks signaling restraint on multiple rate cuts. Commodity products experienced outflows of €2.1 billion, led by gold-related ETFs. ESG ETFs saw declining interest, with flows of €4.7 billion in the second quarter.



Read more at Morningstar: ETFs Are on a Roll, Despite Waning ESG Interest