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European ETFs assets hit all-time high in 2016

European ETFs assets hit all-time high in 2016

The European ETF industry saw assets grow for a fifth consecutive year and reached an all-time high by the end of December 2016.

According to the latest Lipper report, which covers the European ETF market, the industry swelled to €514.5 billion in assets under management (AUM) in 2016.

Promoters of ETFs enjoyed net inflows for the year that were below the record of inflows of 2015, but still above the long-term average.

According to Lipper, positive market impacts, in combination with net inflows, led to increased AUM in the industry, which is up from €448.2 billion as at the end of December 2015.

The overall increase of €66.3 billion for 2016 was mainly driven by net sales, which accounted for €37.7 billion, while the performance of the markets added a further €28.7 billion.

Equity funds held the majority of assets with €356.4 billion, followed by bond funds at €132.0 billion.

These far outstripped other areas, such as commodity products with €15.9 billion, ‘other’ funds at €6.5 billion, money market funds with €2.9 billion, while both mixed-assets and Alternative Ucits products accounted for €0.4 billion.

Bond ETFs were the asset type with the highest net inflows for the year with €19.1 billion of new money. Equity products were not far behind with €15.5 billion, commodity ETFs added €2.6 billion and ‘other’ ETFs accrued €1.6 billion.

Elsewhere, money market ETFs showed the highest net outflows for the year with losses of €0.7 billion, this was followed by Alternative Ucits with €0.4 billion.

The European ETF market is split into 164 different peer groups, with the highest AUM at the end of December 2016 being held by funds classified as equity US with €82.1 billion.

This was followed by equity eurozone (€43.0 billion), equity global (€36.2 billion), equity Europe (€29.9 billion) as well as European corporate bonds (€27.1 billion).

The bestselling promoter in Europe with net sales of €26.6 billion was iShares, followed by Vanguard (€4.3 billion) and State Street (€4.2 billion).

Elsewhere, the bestselling ETF for 2016 was the iShares Core S&P 500 Ucits ETF, accounting for net flows of €4.1 billion of the overall net inflows. This was followed by the Vanguard SP 500 Ucits ETF with €2.7 billion and the iShares Core MSCI World Ucits ETF with €2.3 billion.

Overall, nine of the ten bestselling ETFs for 2016 were promoted by iShares and accounted for net inflows of €17.0 billion, or 45.09% , of inflows into the European ETF segment.

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