European ETF and ETC inflows soar 80% in 2023
Equity ETFs were the biggest gainers for both Q4 and the whole year, adding €34.6bn in the last three months of 2023 and €89.7bn over 2023, a 72% increase from 2022.
Assets under management followed suit, increasing by 24% over the year to €1.6trn, a «new record high» for the market, according to Morningstar research.
Equity ETFs were the biggest gainers for both the fourth quarter and the whole year, adding €34.6bn in the last three months of 2023 and €89.7bn over 2023, a 72% increase from 2022.
Jose Garcia-Zarate, associate director of passive strategies research at Morningstar, noted the bulk of flows into equity ETFs were directed into strategies providing exposure to developed markets, and the US in particular.
Growth opportunities in European ETF market despite 'uneven global recovery'
US large-cap blend equity was the top Morningstar category for the fourth quarter in terms of inflows, with €16.6bn added over the period. It was followed by global large-cap blend equity ETFs — where the US dominates in terms of geographical exposure — with €8.7bn.
The two categories also topped the annual flows board, gathering €300bn and €214bn, respectively, over the year. In contrast, value-themed equity categories, China, UK and Germany were the least popular options in the last three months of 2023.
Bond ETFs were the second biggest gatherers of 2023, with inflows for the last quarter totalling €14bn, and €57.2bn added throughout the year — a 72% rise from 2022.
The «other bond» ETF category saw the biggest inflows at €4.2bn, followed by corporate bond ETFs, which gathered €3.4bn in the fourth quarter. The latter category also topped the annual flows league, adding €11bn over 2023.
ESG ETFs were a close third, attracting
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