Record Breaking Growth
Assets invested in the European ETFs industry soared to an all-time high of $1.90 trillion at the close of February. This monumental achievement surpassed the previous record of $1.83 trillion set at the end of January 2024. The year-to-date increase of 4.2% in 2024 demonstrates the continued upward trajectory of the industry.
Consistent Inflows
- Net inflows of $16.88 billion were reported in February 2024, marking the 17th consecutive month of positive flows.
- Year-to-date net inflows in 2024 stood at $38.50 billion, ranking as the third highest on record, trailing behind the exceptional performances of 2021 and 2022.
As the S&P 500 index surged by 5.34% in February and developed markets excluding the US also saw positive growth, markets in Ireland and Israel noted substantial increases. Emerging markets, including China and Peru, experienced notable upticks, adding to the overall positive sentiment in the global market landscape.
By the end of February, the European ETFs industry boasted 2,999 products across 12,161 listings, with assets totaling $1.90 trillion from 99 providers listed on 29 exchanges across 24 countries.
Asset Allocation Insights
During February, equity ETFs attracted significant investor attention, accumulating net inflows of $15.80 billion. This brought year-to-date net inflows to $29.49 billion, surpassing the performance of the same period in 2023. Fixed income ETFs also saw increased interest, with net inflows of $2.47 billion in February and $10.54 billion year-to-date.
Conversely, commodities ETFs/ETPs experienced net outflows of $1.38 billion in February, resulting in year-to-date net outflows of $2.24 billion. Active ETFs continued to gain traction, drawing in net inflows of $928.24 million during the month and $1.66 billion year-to-date, outperforming the figures seen in 2023.
The top 20 ETFs by net new assets collectively accumulated $16.65 billion during February. Notably, SPDR S&P 500 UCITS ETF (SPY5 GY) emerged as the leader in individual net inflows, raking in $1.89 billion.
Additionally, the top 10 ETPs by net new assets brought in $478.08 million in February. WisdomTree Copper – Acc (COPA LN) claimed the spot for the highest individual net inflow at $144.00 million.
Investor Preferences
Investors displayed a notable preference for equity ETFs and ETPs during February, aligning their investment strategies with the market dynamics and opportunities present in the European ETFs landscape.
The views and opinions expressed herein are the author’s own and do not necessarily reflect those of Nasdaq, Inc.
