- European-domiciled ETFs posted net inflows of $21.2 billion in June, as equity and fixed income ETFs added $17.2 billion and $3.7 billion, respectively.
- Against a benign economic backdrop, strong core equity ETF flows continued while fixed income ETFs in general saw net inflows.
- The Vanguard UCITS ETF range captured net inflows of $1.1 billion in June, with the majority of ETFs in the range recording positive flows.
Monthly recap: European investors focus on core equity exposures
Investors enjoyed a broadly benign economic backdrop in Q2 as various positive trends continued from the first quarter. After months of stagnation, the euro area and UK have finally started to grow again. The European Central Bank has already begun easing its monetary policy, and the Bank of England may not be far behind. In the US, there are still hopes of a soft landing, which we could see in 2025.
Against this backdrop, there was a clear investor preference for equity versus fixed income exposures during Q2, with equity ETFs capturing a larger share of flows month on month. We saw $21.2 billon of assets flow into European-domiciled ETFs in June, bringing the YTD total to $115.0 billion across all asset classes ($63.4 billion in Q2). Equity ETFs captured $17.2 billion of flows last month (81% of the overall total), for the second-highest monthly tally this year. Core equity ETFs were again the dominant driver, while on a regional basis investors favoured US and developed market equity ETF exposures.
Flows into fixed income ETFs totalled $3.7 billion in June, a little less than half of the $8.3 billion of inflows we saw in May. As investors continue to consider the interest rate outlook, ultra-short maturity ETFs have remained in favour, and June marked six straight months of net inflows into the category. Investors also showed a preference for government bond ETFs. Euro area, global and US fixed income ETF exposures claimed the majority of inflows.
Commodity ETFs picked up net inflows of $204 million in June, while alternatives and multi-asset ETFs gathered net inflows of $61 million and $22 million, respectively.
Total ETF market flows
European-listed ETF inflows finish strong Q2
European ETF cumulative flows – cumulative 12 months by asset class ($ billion)
Source: ETFbook, as at 30 June 2024.
Equity ETFs
Core equity ETFs continue drawing in assets
Equity flows by category: Month to date ($ million)
Source: ETFbook, as at 30 June 2024. The ‘segment’ category includes equity exposures which target specific market capitalisation segments, such as small-cap, mid-cap and large-cap. The ‘market access’ category includes difficult-to-access markets such as emerging markets. The ‘basket’ category includes strategies that combine several stocks as the underlying exposure, such as FAANG stocks.
We saw net inflows across most of the equity ETF categories we track. Core equity ETFs kept up their strong positive trend, adding $9.7 billion of net inflows in June for a YTD total of $64.3 billion ($31.8 billion in Q2). Investors also continued moving into sustainable ETFs, adding $4.1 billion to the category following inflows of $2.9 billion in May. Reflecting broadly positive investor sentiment, there was little in the way of net outflows in June, with thematic ETFs the only stand-out, losing -$127 million of assets.
US and developed market ETFs drive net inflows
Equity flows by geographic exposure: Month to date ($ million)
Source: ETFbook, as at 30 June 2024. The ‘world’ category excludes emerging markets.
United States and developed market equity ETFs registered the highest net inflows in June, with $7.4 billion and $5.5 billion, respectively. US equity ETFs have now posted six straight months of net inflows in 2024, totalling $29.5 billion ($14.3 billion in Q2). In terms of net outflows, euro area and various single-country ETFs fell out of favour. Euro area exposures saw -$578 million of net outflows while Switzerland and Japan strategies lost -$484 million and -$392 million, respectively.
Fixed income ETFs
Ultra-short maturity and government bond ETFs again top the table
Fixed income flows by category: Month to date ($ million)
Source: ETFbook, as at 30 June 2024.
Ultra-short maturity bond ETFs gathered the highest net inflows with $1.9 billion. The exposure has now seen six straight months of net inflows in 2024, for a YTD total of $12.2 billion ($6.4 billion in Q2). Government bond ETFs again saw relatively strong net inflows, attracting $1.5 billion in new assets and bringing the category’s three-month total to $6.1 billion. Corporate bond ETFs added $688 million in June and have also seen three months of net inflows, totalling $976 million. On the negative side of the ledger, high-yield bond ETFs posted their first monthly net outflows of the year, losing $733 million in assets.
Euro area and global bond ETFs see highest net inflows
Fixed income flows by geographic exposure: Month to date ($ million)
Source: ETFbook, as at 30 June 2024.
In June, we saw positive flow trends continue across euro area, global and United States bond ETFs, as each segment has seen six months of inflows in 2024. Euro area bond ETFs tacked on $1.2 billion of net inflows in June, bringing the YTD total to $12.3 billion ($5.1 billion in Q2). Global bond ETFs brought in $1.0 billion of net inflows in June for a YTD total of $6.7 billion ($3.6 billion in Q2), while US bond ETFs have gathered $10.8 billion YTD ($6.7 billion in Q2) following $868 million of net inflows last month. In terms of net outflows, German bond ETFs saw the largest net outflows for a second straight month, weathering losses of -$702 million in June.
Vanguard UCITS ETFs
Vanguard range sees net inflows of $1.1 billion in June
Vanguard UCITS ETF net flows: Month to date ($ million)
Source: ETFbook, as at 30 June 2024.
The Vanguard UCITS ETF range captured net inflows of $1.1 billion in June, with the majority of ETFs in the range recording positive flows. Inflows were split between Vanguard’s equity UCITS ETF range ($814 million) and fixed income UCITS ETF range ($270 million), while the multi-asset UCITS ETF range saw net inflows of $21 million.
Related ETFs
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