European ETF assets near $300bn mark, says Credit Suisse

Mar 12th, 2012 | By | Category: ETF and Index News

In their latest Monthly European ETF Market Monitor report, edited by Ursula Marchioni, Director and Head of ETF Sales Strategy, investment bank and exchange-traded fund provider Credit Suisse reported European ETF asset flows for February 2012. Following is a roundup of the key themes.

European ETF assets near $300bn mark

According to Credit Suisse's latest monthly ETF Market Monitor report, at the end of February 2012, the European ETF market recorded assets of $294.24bn across 1,364 funds.

As at the end of February 2012, the European ETF market recorded assets of $294.24bn across 1,364 funds listed and domiciled in Europe, up 5.44% from $279.05bn at the end of January.

During the month of February, European ETFs recorded net inflows of $1,463m, almost 50% less than in the month before and roughly in-line with the result recorded in February 2011 of $1,335m.

Inflows into equity ETFs accounted for a strong $1,662m; inflows also characterised almost all other asset classes with the exception of money market ETFs, which recorded outflows of $541m.

Emerging Markets focused ETFs continued to attract investors’ interest. The aggregate inflows into Brazil, Russia, India and China-focused European trackers accounted for $446m in February, following inflows of $426 m in January.

Global Emerging Markets trackers recorded inflows of $1,063m for the month, adding the previous month’s positive result and bringing the year-to-date (YTD) net new assets balance to a sizeable $1,534m.

Investor’s enthusiasm for US equities cooled down, and ongoing investor concerns on the stability of the eurozone had an impact on both French and German equity trackers.

Growth and Growth and Income trackers recorded aggregate inflows of $325m for the month, and of $624m for the year.

A shift was detected from defensive plays to cyclical industry sectors: YTD Healthcare trackers recorded outflows of $267m, while Financial Services ETFs recorded inflows of $216m. Real Estate also is proving to be in investors’ favour, with YTD inflows of $195m.

The negative sentiment on the fixed income space was highlighted by the significant decrease in net new assets for debt ETFs. Inflows in these trackers accounted for $30m in February, compared to $968m in January.

Continued strong interest in corporate bonds was noted, with inflows of $441m for the month, bringing the YTD balance to $904m.

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