European ETFs suffer 28% drop in inflows in Q2 2023

Morningstar Research

European ETFs attracted €28.1bn in the second quarter of 2023, down from €38.9bn in the first three months of the year, according to Morningstar Research data.

Assets under management in ETFs and ETCs, however, continued to grow from €1.4trn in Q1 to €1.5trn in Q2. Of these, 68% were invested in equities, 23% in bonds and 7% in commodities. The slowdown in flows was largely driven by lower appetite for equity market exposure, Morningstar Research found. Despite this, flows into equity ETFs remained positive over the period at €12.7bn, though down 42% from Q1. Standalone US large-cap blend and Japanese large-cap equities attracted the most interest over the quarter, with inflows of €2.9bn and €2.2bn, respectively. Value-focused equities wa...