Equities flows YTD remain negative.
ESG ETFs have recorded a record €3.7bn of inflows in June, bringing the asset class to a cumulative total for 2020 of €14.3bn, according to the latest Money Monitor from Lyxor ETF.
Equity ESG ETFs gathered three times as much as fixed income ESG ETFs in June, with €2.8bn and €0.9bn respectively, but across the wider passive industry equities continue to lag bonds, with the former still in negative flows year to date (€-0.1bn), while fixed income has recorded the highest cumulative flows for the year (€15.1bn).
Global fixed income took the greatest share of net new assets across European-domiciled open-ended funds and ETFs, recording a total €9.5bn net inflows to the space, while USD followed in second with a total €6.9bn net inflows, with Euro third with €5.7bn of net new assets and emerging markets rounded off the list with €1.8bn.
Money market funds and ETFs far outweighed any asset class in June with net new assets of €45.4bn, ahead of fixed income’s €34.2bn and equity’s €18.2bn, although money market ETFs contributed negatively, with outflows of €0.4bn, leaving open-ended money market funds to gather €45.7bn.
World equity funds and ETFs were responsible for nearly 90% of inflows for equities, recording net new assets of €16bn, the majority of which, €13.2bn, was received by open-ended funds.
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US equity followed far behind in second place, with net new assets of €1.5bn, buoyed entirely by €2.3bn flowing into ETFs, outweighing the €0.7bn net outflows from open-ended funds.
US, Switzerland and Japan provided the greatest cumulative equity flows among developed nations in June, while China led emerging market nations, delivering inflows six times that of silver positioned Brazil.
The UK saw over €1.2bn of outflows from European-domiciled open-ended funds and ETFs in June, the worst performing developed nation by far, while India took the emerging market equivalent of that crown.
On a sector basis within world funds, technology leads the pack with inflows of €3.2bn, followed by ecology, healthcare, energy and infrastructure, while precious metals takes the title of bottom sector, with €0.4bn outflows.
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In European sectors, ecology is also a strong performer, leading the way with €0.4bn inflows, followed by financials, energy, consumer goods and industrials, while healthcare delivered the worst negative flows of €0.1bn.
Commodities continued to receive greater flows than its previous five years, even though it slowed to net new assets of €0.4bn in June, with ETFs contributing three times the flows of active funds.
Smart beta has seen an uptick from its, to date, worst year in the past half-decade, with equity smart beta ETFs bringing over €0.6bn in June.
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