LSEG Lipper: 2023 very good year for European ETF industry

LSEG Lipper: 2023 very good year for European ETF industry

Europa (02) omhoog

Inflows into ETFs for 2023 were the second highest inflows for ETFs in Europe in history.

‘ETFs have witnessed inflows of € 154.9 billion over the course of 2023. These flows marked the second highest inflows into ETFs in history and fell only shy of the record inflows of the year 2021 (+ € 161.4 billion). Therefore, 2023 will be considered as a very good year for the European ETF industry,’ concludes to  LSEG Lipper today.

‘Conversely, actively managed long-term mutual funds faced outflows (- € 173.5 billion). That said, the inflows into money market products (+ € 161.2 billion) brought the overall outflows from actively managed funds down (- € 12.4 billion).

Some market observers may speculate that European investors are selling actively managed products and buying back passive products, especially for classifications with roughly matching numbers for the outflows from actively managed funds and the inflows into ETFs. Generally speaking, one could agree with this thesis by looking at the high-level numbers, but since this can’t be proven by facts, agreeing with this assumption depends on the reader’s point of view.

In addition, one needs to bear in mind that the flows in money market products are impacted by a combination of asset allocation decisions of portfolio managers and corporate actions such as cash dividends or cash payments since money market funds are also used by corporations as replacements for cash accounts.’

The company says that according to its database, ‘there were 277 fund promoters in which witnessed inflows of more than € 10.000,- over the course of 2023, while 554 fund promoters faced outflows over the same time period. As for the overall fund flow trend, it is not surprising that the majority of promoters who offer mixed-assets funds faced outflows over the course of 2023.’

‘BlackRock (€ 1,496.3 billion) is by far the largest fund promoter in Europe. The market leader is followed by Amundi (€ 566.7 billion), JPMorgan (€ 401.8 billion), DWS Group (€ 401.8 billion), and UBS (€ 396.0 billion).’