European ETF market opens 2021 breaking €1trn barrier

The sector saw €15.2bn in positive inflows in January

The sector saw €15.2bn in positive inflows in January

The European ETF market has broken the €1trn barrier, one year after surpassing $1trn in assets under management (AUM), according to data from Refinitiv Lipper.

Positive inflows drove the greatest growth in AUM over January 2021, adding €15.2bn, while market performance added €1.1bn, bringing the total AUM of the European ETF industry to €1.01trn from €992.6bn on 31 December 2020.

European ETF market surpasses $1trn milestone

Equity funds remain the greater portion of the European passive industry, with €690.1bn representing 68% of the market, followed by fixed income with €272.6bn (27%), while commodities accounts for 4% of AUM at €36.6bn.

Equity funds also dominate the industry when broken into peer groups, with the top five classifications all held by stocks, with Equity US (€189.8bn) leading the way, followed by Equity Global (€115.6bn), Equity Emerging Markets (€53.2bn), Equity Eurozone (€49.3bn) and Equity Europe (€47.8bn), all of which combined represent 46.2% of the entire market.

Three fixed income, a commodity and an equity peer group round out the top ten, which totals 58.3% of the European ETF industry.

Inflows to the market in January were more concentrated still, with the top ten best-selling classifications comprising 85.5% of all positive flows, bringing €13bn of the total €15.2bn net flows.

The European ETF industry remains even more concentrated by provider as iShares alone represents 45.8% of the market, holding €462bn in AUM. Xtrackers follows in second place with €118bn, in turn followed by Lyxor ETF’s €77.6bn, with the top ten promoters accounting for 93.2% of all European ETF AUM.

The future of the European ETF market: Sustainable, thematic and innovative

Over the course of January 2021, ten funds received more than a third of total net inflows in a market comprised of 3,011 instruments, the top three of which all featured an ESG focus.

Amundi Index MSCI USA SRI UCITS ETF topped the table, collecting €0.9bn in net new assets, with iShares Global Clean Energy UCITS ETF following in second (€0.7bn), while Amundi MSCI USA ESG Leaders Select UCITS ETF rounded out the top three with €0.6bn.


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