The promoters of ETFs enjoyed net inflows (+€8.1 bn) for July and the assets under management in the European ETF industry (€582.2 bn) increased €4.6 bn for July, up from €577.6 bn at the end of June.
European investors are showing more interest in ETFs this year, with flows into European-listed products so far this year to the end of July breaking past the record net sales seen during the whole of 2016.
ETFs investing in UK equities are down 2.9% over the last month after the fall of Sterling currency, lower-than-expected inflation data and the Bank of England’s hesitation to raise interest rates one year after Brexit.
The attitudes of European and US investors towards gold ETFs have not been this different since 2013, as EMEA-domiciled gold ETPs have attracted positive flows every month so far this year, while US offerings have suffered outflows.
ETF investors should look to developed or emerging small caps excluding the US as domestic smaller companies are not benefitting from foreign growth and dollar weakness like their larger counterparts.
The promoters of ETFs enjoyed high net inflows over the course of first half 2017. In combination with positive market performance the assets under management in the European ETF industry increased for H1-2017.