Invesco’s takeover of Source last week has sparked speculation over whether the move can mark the beginning of a consolidation trend in the European ETF industry.
Investors have increased their holdings in short European equity ETFs by the highest amount for over a year. The recent rally in equities worldwide is sending some investors into contrarian positions, given the ongoing political risks threatening the stability of global stock markets.
Consultancy firm EY has released a new report on the outlook for the ETF markets across the globe. It is predicting ETFs in Europe will continue taking in new money to hit $1.1trn in AUM by the end of 2020, with fixed income being one of the key drivers of inflows.
Investors have started putting money into global equity ETFs again after months of outflows, according to the latest data on European ETFs provided by TrackInsight. Meanwhile, interest in US and Asian equity products seems to be waning as worries mount over the upcoming election in the US.
European equity ETFs suffered renewed outflows in the month following Brexit, despite a reversal of this trend in June, the month when the referendum took place, as spooked investors rushed to take money out of Europe.