Partner Insight: Vanguard European ETF flows summary

Highlights

European-domiciled ETFs saw total net inflows of $11.1 billion in August, down from the $17.3 billion of inflows recorded the previous month¹.
Equity products saw net inflows of $7.2 billion while fixed income strategies attracted $3.8 billion.
Commodity ETFs generated inflows of $330 million, while multi-asset products saw inflows of $48 million. Alternatives strategies suffered outflows of -$244 million.

Total ETF market flows

Bond and equity ETFs continue to see robust inflows in 2023

European ETF cumulative flows - cumulative 12 months by asset class ($ billion)

Source : ETFBook, as at 31 August 2023.

Equity ETFs

Core equity exposures again the most popular in August

Equity flows by category: Month to date ($ million)

Source: ETFBook, as at 31 August 2023. The ‘segment' category includes equity exposures which target specific market capitalisation segments, such as small-cap, mid-cap and large-cap. The ‘market access' category includes difficult-to-access markets such as emerging markets. The ‘basket' category includes strategies that combine several stocks as the underlying exposure, such as FAANG stocks.

Core equity ETFs were again the top contributor in August, contributing $4.9 billion in net inflows. Sustainable equity strategies were the second-most popular category, garnering $2.9 billion in net inflows. Equity sector products, meanwhile, saw -$569 million of net outflows during the month.

Investors demand US equity exposures

Equity flows by geographic exposure: Month to date ($ million)

Source : ETFBook, as at 31 August 2023.

United States exposures ($4.4 billion) attracted the most inflows within equity ETFs, followed by World (which doesn't include emerging markets) ETFs, which saw $2.1 billion in net inflows. Europe equity ETFs were the least popular category, as they saw -$710 million in net outflows.

Fixed income ETFs

Ultra-short maturity bond ETFs lead fixed income flows

Fixed income flows by category: Month to date ($ million)

Source : ETFBook, as at 31 August 2023.

Ultra-short maturity bond ETFs² ($2.5 billion) were the biggest contributors to net fixed income inflows, followed by government bond ETFs ($2.2 billion), while corporate bond products saw the largest outflows (-$746 million).

US bond exposures top investor wish lists

Fixed income flows by geographic exposure: Month to date ($ million)

Source : ETFBook, as at 31 August 2023.

As within the equity ETF sector, demand for United States exposures was high across fixed income ETFs, with $2.5 billion of net inflows in August, representing the most of any fixed income ETF region. Meanwhile, eurozone ETFs also benefitted from inflows of $1.1 billion. Emerging market bond ETFs saw the largest net outflows, with -$865 million.

Vanguard UCITS ETFs

Vanguard range sees net inflows of $1.4 billion in August

Vanguard UCITS ETF net flows: Month to date ($ million)

Source : ETFBook, as at 31 August 2023.

The Vanguard UCITS ETF range captured net inflows of $1.4 billion, with the majority of Vanguard UCITS ETFs recording positive flows. Flows were split between Vanguard's equity UCITS ETF range ($981 million), fixed income UCITS ETF range ($368 million) and multi-asset UCITS ETF range ($21 million).

¹ Source: ETFBook, as at 31 August 2023.

² Source: ETFBook, as at 31 August 2023. The ultra-short category includes ETFs that invest in fixed income instruments with very short-term maturities.

Our most-popular ETFs in August

Exchange-traded funds

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