Contribution of UK-listed active ETFs to total flows halves in September 2023

investmentweek.co.uk:

Despite this, total net assets for active ETFs increased to 1.48% from 1.37%, month-on-month.

Absolute active ETF sales have also fallen, down from £706m in August to £431m in September.

Despite this, total net assets for active ETFs increased to 1.48% from 1.37%, month-on-month.

JPM US Research Enhanced Index Equity ESG UCITS ETF USD A enjoyed the most significant inflows among active ETFs, with £251.6m, while JP Morgan also took nine of the top ten spots for best-selling active ETFs in September.

LSE has 58 active and 1,649 passive ETFs listed, compared to 104 active and 2,968 passive ETFs registered for sale in at least one country in Europe, which means that 55.8% of all active and 55.6% of all passive ETFs are at least cross-listed on London's bourse.

Investors prefer active ETFs while fixed income flows dominate in H1 2023

Total net flows for UK-listed ETFs in September was £6.7bn,  while total assets under management hit £916bn.

Between September 2022 and September 2023, bond ETFs have risen from £178.1bn assets under management to £203.9bn.

Even with this increase, the flows for September were negative, with bond ETFs chalking up net outflows of £249m. According to Lipper, the rapid rise in Treasury yields at the long end of the curve is alarming investors.

Equity US ETFs were the best-selling Lipper classification for September, with £3.8bn inflows. This was followed by equity global, with £3bn inflows.

Lipper noted the popularity of equity ETFs has been consistent across the European ETF industry, and the success of equity US ETFs persisted despite the poor performance of the Magnificent Seven and the S&P 500 in September.

The money predominantly flowed into capitalisation weighted indices, with iShares Core