European ETF And ETP Demand Outstrips US In May

Mark Shapland

10 June 2014

Demand for European listed exchange traded products (ETPs) and exchange traded funds (ETFs) have outpaced the US for the first time since 2010, latest data reveals.

In May European net inflows were $6.05 billion (£3.6 billion) - growth of 9.9 per cent year to date - while the US growth rate was just 6.1 per cent over the same time period. It meant total ETP/ETF assets at the end of May were $459 billion in Europe and $1.8 trillion in the US.

“For the first time since 2010 asset growth in European listed ETFs/ETPs, at 9.9 per cent year to date, is outpacing asset growth in US listed ETFs/ETPs, at 6.1 per cent year to date. The majority of net new assets in Europe went into equity exposures in May,” said Deborah Fuhr, managing partner at , the economic research firm.

A breakdown for the month shows that European equity ETFs/ETPs gathered the largest net inflows with $4.63 billion, followed by fixed income ETFs/ETPs with $1.37 billion, while commodity ETFs/ETPs experienced the largest net outflows with $452 million.

Globally ETFs and ETPs gained $22.4 billion in net new assets in May which pushed total assets in the industry to a new record high of $2.55 trillion. The breakdown revealed that fixed income ETFs/ETPs gathered the largest net inflows with $11.5 billion, followed by equity ETFs/ETPs with US$10.3 billion, while commodity ETFs/ETPs saw net outflows of US$565 million.