ETF Momentum: Defense Themes Surge While Gold Funds Bleed

Outflows hit Financials (-€223 million) and Materials (-€152 million) despite both sectors posting modest or mixed returns. Meanwhile, Health Care enjoyed inflows of €138 million, signaling steady investor attention, while Utilities (-0.35%) and Communication Services (-0.46%) saw mild declines.

Regional Moves: Northern Europe and Southeast Asia Outperform

Across global regions, equity markets in Indonesia (+6.56%), Finland (+4.95%), and Turkey (+4.80%) stood out as the week’s strongest performers. Slovenia (+4.64%) and Poland (+4.36%) also notched solid gains, while Vietnam (-3.98%) trailed.

Flows favored developed markets (€750 million) and emerging markets (€650 million), with additional demand for U.S. exposures (€437 million). However, Europe-focused ETFs lost €217 million, dragged by outflows from Germany (-€99 million) and Mexico (-€94 million).

Thematic Trends: Net Zero Dominates as Defense Themes Surge

The thematic ETF space continued to attract capital, led by Net Zero 2050 funds (€757 million), far ahead of Cryptocurrency (€132 million) and China Disruptive Technology (€97 million) strategies.

Performance-wise, defense-related themes stood out: Asia Defense (+8.06%), Global Defense (+5.74%), and Europe Defense (+4.71%) all posted robust gains. Cryptocurrency (+4.05%) and China Digitalization (+3.91%) added to the positive tone, while Nuclear Energy (-5.73%) and Blockchain (-2.42%) lagged.

Fixed Income Focus: Government Bonds Take the Lead

Bond investors concentrated on high-quality government exposures. Government Investment Grade ETFs pulled in €833 million, followed by Government Aggregate (€413 million) and Aggregate Investment Grade (€393 million). Overall, the fixed income space saw the strongest weekly inflows across asset classes, reinforcing investor demand for stability and yield.

Commodities Under Pressure as Gold Sees Heavy Redemptions

Commodity ETFs faced significant withdrawals, with gold funds losing €1.84 billion — by far the week’s largest single drag. Silver (-€117 million) and multi-commodity baskets (-€58 million) also saw redemptions.

Bright spots included crude oil (+€63 million), platinum (+€21 million), and base metals (+€21 million), but these gains were not enough to offset the broader downturn.