Across the board, equity and fixed income Europe-domiciled ETFs gathered “solid” net inflows of €10.4bn through the course of the month.
Equities ETFs were strongly in favour, the research suggests, with investors adding a net €9.7bn to the asset class through the investment vehicle, while fixed income ETF flows fell just short of €1bn.
Against the ongoing backdrop of uncertainty and rising inflation, European ESG ETFs “gained further momentum” with an influx of new cash to the tune of €6.5bn, accounting for over half of total ETF net inflows.
Global ETF assets break $10trn barrier
Open-ended fixed income funds gained net new assets of €25.5bn in October, bringing the combined total flows for the asset class – including fixed income ETFs – to €26.4bn.
Lyxor ETF commented: “[Fixed income] flows went mostly to defensive exposures, whilst EM and High Yield lost ground.”
Open-ended equity funds saw €21.7bn of net inflows bringing the overall total to over €31bn, according to the report.
“Investors showed further preference for well diversified developed markets exposures. Technology, Energy and Financials were also in favour,” said Lyxor.
Inflation-linked ETPs see record inflows in October
The ETF provider highlighted that October was a “very strong” month for risk assets, with the S&P500 ending with a 6.9% return.
On the Smart Beta ETF front, which attracted €0.7bn, ‘Quality’ funds were most in favour. “This indicates increasing cautiousness from some investors,” said Lyxor.