ESG drives bulk of flows into European ETFs and ETCs in 2022

65% of flows directed to ESG products

ESG products comprised the majority of total flows into European ETFs and ETCs last year, despite underperforming the mainstream, Morningstar’s Q4 2022 European ETF Asset Flows report has found.

In the fourth quarter, ESG ETFs attracted €14.9bn, driving up the annual total to €51bn. This represented 65% of all flows into both ETFs and ETCs in 2022, up from 53% in 2021.  These products now account for 18.8% of total assets in ETFs and ETCs in Europe, after assets grew to €248.8bn. If ETCs are excluded from the calculation, this figure goes up to 20.5%. Despite the challenging conditions for financial markets last year, the European ETF market still managed to attract annual inflows of €78.4bn.  Morningstar: European ETFs and ETCs see €7.9bn outflows in Q3 This was down f...