European ETF market flows turned negative in September 2014, breaking a one-year sustained positive trend. Net outflows during this month amounted to EUR2.0bn….
Marlène Hassine – Head of ETF Research – Lyxor ETF
Lyxor Etf Barometer – September 2014
Total Assets under Management (EUR344.9bn) are nearly flat if compared to the level at end of August 14, benefiting from a positive equity market impact (0.92%*). European and German equity ETFs in particular have registered record high outflows in an increasingly volatile environment (VSTOXX up from 14.5% to 17.6% between the 19th and the 26th September).
Equity ETFs registered significant outflows of EUR1.7bn. In Europe, German and Eurozone equity indexations have posted high outflows respectively of -EUR2.3bn and -EUR1.2bn, mainly concentrated on a very limited number of ETFs. Peripheral and Small and Mid cap equity ETFs in Europe have also registered outflows (-EUR325M and -EUR269M respectively) whereas European value indexations inflows reached a one-year record high of EUR193M. Regarding other developed countries, US and Japan indexations saw sustained inflows of EUR908M and EUR304M both above one year average NNA. Emerging market equity ETFs inflows are also still sustained at EUR711M, mainly focused on broad indexations together with some flows on Asian regional indexations.
Fixed income ETFs also registered outflows amounting to EUR170M reflecting a pause in the positive year-long trend. Outflows were mainly concentrated on European Govies at -788M whereas flows were positive on US treasuries indexations at EUR468M. Global corporate bonds ETFs continued to be favoured by investors with EUR134M of inflows as credit continues to offer an attractive risk reward profile. High yield indexations have continued to register outflows of EUR215M amidst fears of already very tight valuations. Net flows on Emerging market debt are almost flat this month.
*Price variation of the MSCI ACWI NTR Index in EUR between 29/08/14 and 26/09/14.
Source: ETFWorld.co.uk
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