September 'challenging' for investors but ETFs prove resilient

Year-to-date ESG ETF subscriptions represent almost half of total flows for 2021

September was a “challenging” month for investors as they faced increased market volatility due to concerns the global recovery from the pandemic may be stalling while inflationary pressures also became more persistent, but ETFs were "resilient", according to a report by Lyxor ETF.

The S&P 500 recorded its largest monthly drop in 2021, hit by higher government bond yields at the end of the month, the report highlighted. Nevertheless, despite the market volatility, European ETFs attracted a "solid" €13.3bn in net new assets over the month. Equity ETFs took the lion's share of new investment and saw €7.7bn of inflows while fixed income ETFs drew in €5.3bn. Since the start of 2021, flows into ESG ETFs - which took in €3.7bn in September - represent almost half of the total ETF flows for the year, Lyxor noted. Passive trumps active in latest Morningstar Barometer...