Highlights

  • European-domiciled ETFs saw their twenty-fifth consecutive month of inflows in April as flows rebounded after a weak March, recording $15.8 billion of new fund assets1.
  • Equity ETFs captured $11.3 billion of net cash flows, substantially higher than in March ($2.1 billion).
  • Fixed income ETF inflows ($4.3 billion) lagged those into equity products but were nevertheless stronger than those recorded the previous month ($2.5 billion).

 

European-domiciled ETF inflows rebounded in April after enduring a challenging month in March, as flows reached $15.8 billion, up from $4.2 billion the previous month. Equity ETFs captured $11.3 billion of net cash flows, substantially higher than in March ($2.1 billion), while fixed income products garnered $4.3 billion in assets, also up on those recorded the previous month ($2.5 billion). Commodity flows were broadly flat in April, at -$14 million, having registered outflows of -$0.4 billion in March.

Within equities, core exposures led the inflows in April, taking in $8.1 billion. The majority of flows went into global exposures ($4.8 billion), followed by world ($1.5 billion) and European ($0.9 billion) products; eurozone ETF exposures suffered outflows of -$0.9 billion. Sustainable ETFs experienced inflows of$1.1 billion, with world ($0.4 billion), US ($0.3 billion), Japan ($0.2 billion) and emerging market ($0.2 billion) the most popular with investors in April. Inflows into thematic ETFs ($1.1 billion) were mainly driven by the popularity of global thematic products ($1 billion).

In fixed income, government, corporate, and aggregate ETFs were the largest contributors to total inflows of $4.3 billion, contributing $1.8 billion, $0.9 billion and $0.5 billion of flows respectively. Government bond ETF inflows into US ($2.9 billion) and eurozone ($0.4 billion) products were in part offset by outflows from China government bond ETFs (-$2.1 billion). Inflows into corporate bond ETFs were led by US ($1.4 billion) and UK ($0.3 billion) exposures, while eurozone corporate bond ETFs suffered outflows (-$0.7 billion). Aggregate bond ETF flows went mainly into global ($0.2 billion) and eurozone ($0.2 billion) exposures, while US aggregate fixed income ETFs saw outflows (-$67 million).

Commodity ETFs lost $14 million of assets in April, as inflows into broad commodity ETFs excluding agriculture ($0.2 billion) were offset by outflows from broad exposures (-$0.1 billion) and precious metals ETFs (-$65 million).

Vanguard UCITS ETFs2

In April, the Vanguard UCITS ETF range captured net inflows of approximately $1.6 billion, spread across the equity ($1.0 billion), fixed income ($0.5 billion) and multi-asset ($30 million) ranges. In equity, the Vanguard S&P 500 UCITS ETF ($0.4 billion), the Vanguard FTSE All-World High Dividend Yield UCITS ETF ($0.3 billion) and the Vanguard FTSE All-World UCITS ETF ($0.2 billion) saw the largest inflows.

The Vanguard fixed income UCITS ETF range experienced inflows of $0.5 billion in April, primarily driven by inflows into the Vanguard USD Corporate 1-3 Bond UCITS ETF ($0.2 billion), the Vanguard USD Corporate Bond UCITS ETF ($0.1 billion) and the Vanguard USD Treasury Bond UCITS ETF ($0.1 billion).

The Vanguard LifeStrategy UCITS ETF range continued to see significant investor interest, attracting $30 million of inflows.

 

1 Source: Vanguard, ETFbook, as at 29 April 2022. Data extracted on 3 May 2022.

2 Source: Vanguard, ETFbook, as at 28 April 2022. Data extracted on 3 May 2022.

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Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.

Investments in smaller companies may be more volatile than investments in well-established blue chip companies.

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