Demand for fixed income products drives July European ETF sales #NewsMarket

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The European exchange traded funds industry enjoyed another healthy month of inflows in July, helped by a rise in demand for bond products.

ETF firms in Europe recorded estimated net inflows of €20.9bn last month, according to the latest figures from LSEG Lipper.

July’s inflows compare with €19.3bn the industry attracted in June, and bring total net inflows over the first seven months of 2024 to €125bn.

The net sales garnered by the European ETF space in July “occurred in a positive market environment”, said Detlef Glow, head of Europe, the Middle East and Africa research at LSEG Lipper.

This article was previously published by Ignites Europe, a title owned by the FT Group.

“Nevertheless, equity markets looked somewhat vulnerable given the high valuations of the market leaders. It is not surprising that investors are nervous and reacting quite fast on any news that may impact the current market environment negatively.”

Flows to European equity ETFs dipped from €16bn in June to €11.2bn last month, according to the report.

US equity ETFs were the top-selling category, with net inflows of €4.6bn, followed by global equity ETFs, which collected €3.8bn.

Net sales of bond ETFs rose month on month from €1.5bn to €6.9bn.

Money market ETFs gathered €2.9bn of net new money, while net flows to alternative and mixed asset ETFs reached €300mn and €100mn respectively in July.

BlackRock’s iShares arm was the best-selling ETF promoter in Europe during the month, gathering €7.4bn, while Amundi and Vanguard ranked second and third, with €3.9bn and €2.4bn of net inflows respectively.