Vanguard European ETF market review: European-domiciled ETFs saw their twentieth consecutive month of inflows, recording $16.1 billion of new fund assets in November.
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Vanguard European ETF market review November 2021
Highlights
Equity ETF flows slowed slightly over the month, with $10.3 billion of net cash flows, compared with $11.3 billion in October.
Fixed income ETF flows gained momentum in November with $5.3 billion net cash flows, up from the $0.7billion of flows received in the previous month.
European-domiciled ETF inflows accelerated in November ($16.1 billion) relative to the previous month ($12.4 billion). Equity ETF exposures again took the large part of market inflows ($10.3 billion), while fixed income ETFs saw $5.3billion of inflows, up from the $0.7 billion of flows seen in October. Commodity ETFs experienced outflows of -$158 million.
Within equities, sustainable ETF exposures led the inflows, taking in $7.3 billion for the month, followed by core equity ETF strategies ($2.9 billion). Sustainable ETF flows mainly went into US ($ 1.6 billion), world ($1.4 billion), Europe ($1.0 billion) and emerging markets ($0.9 billion) exposures. Core equity ETF inflows were led by US ($1.8 billion), world ($1.4 billion) and all-world ($0.5 billion) exposures, offset in part by negative flows from core European equity strategies, namely France (-$0.3 billion), UK (-$0.2 billion), Germany (-$0.2 billion) and Spain (-$0.2 billion) exposures.
In fixed income, government bond and inflation-linked bond ETFs dominated the flows, contributing $2.1 billion and $1.1 billion respectively to the asset class’s total monthly inflows of $5.3 billion. Within government bond ETFs, euro area exposures led the inflows ($0.8 billion), followed by China ($0.5 billion) and diversified global ($0.4 billion) ETFs. Inflation-linked bond ETF inflows were primarily driven by US ($0.5 billion) and euro area ($0.4 billion) exposures. Corporate bond ETFs also saw net inflows ($0.9 billion), led by euro area ($0.9 billion) and global ($0.2 billion) exposures.
Commodity ETFs suffered outflows in November (-$158 million), with energy and metals (-$81 million), broad commodity (-$65 million) and precious metals (-$52 million) strategies seeing the largest negative flows.
Vanguard UCITS ETFs
The Vanguard UCITS range captured net inflows of approximately $246 million in November, primarily driven by inflows into the fixed income range ($127 million). This month, fixed income ETF inflows mainly went into the Vanguard USD Treasury Bond UCITS ETF ($71 million) and the Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF ($19 million). Equity ETF inflows went largely into the Vanguard FTSE All-World High Dividend Yield UCITS ETF ($196 million), which were offset by outflows from the Vanguard S&P 500 UCITS ETF (-$182 million) and the Vanguard FTSE All-World UCITS ETF (-$104 million).
The Vanguard LifeStrategy UCITS ETF range continued to see investor demand, benefitting from $55 million of total inflows in November.
Source: ETFWorld.co.uk
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