fund

ESG 'gains further momentum' in October, attracting majority of total ETF inflows


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.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.