Total ETF market flows
Equity and bond ETFs continue to see robust inflows in 2023
European ETF cumulative flows – rolling 12 months by asset class ($ billion)
Source : ETFBook, as at 30 June 2023.
Equity ETFs
Core equity exposures most popular in June
Equity flows by category: Month to date ($ million)
Source: ETFBook, as at 30 June 2023. The ‘market access’ category includes difficult-to-access markets such as emerging markets.
Core equity ETFs were the top contributor in June, contributing $4.4 billion in net inflows. Equity sector strategies, meanwhile, saw -$1.2 billion of net outflows during the month, while the commodity equity category experienced net outflows of -$231 million.
Investors opt for world exposures
Equity flows by geographic exposure: Month to date ($ million)
Source : ETFBook, as at 30 June 2023.
World (which doesn’t include emerging markets) ($3.4 billion), United States ($2.4 billion) and global ($1.8 billion) exposures attracted the most inflows within equity ETFs, while eurozone equity ETFs saw the largest outflows, with -$1 billion.
Fixed income ETFs
Government bond ETFs lead fixed income flows
Fixed income flows by category: Month to date ($ million)
Source : ETFBook, as at 30 June 2023.
Government ($3.4 billion), corporate ($1.4 billion) and aggregate ($841 million) bond ETFs contributed the most to net fixed income inflows of $7.4 billion, while convertible bond ETFs saw the largest outflows (-$237 million).
Eurozone bond exposures top investor wish lists
Fixed income flows by geographic exposure: Month to date ($ million)
Source : ETFBook, as at 30 June 2023.
Eurozone ($3.1 billion), United States ($2.5 billion) and United Kingdom ($871 million) products attracted the most inflows within fixed income ETFs in June, while world fixed income ETFs saw outflows of -$102 million.
Vanguard UCITS ETFs
Vanguard’s ETF range sees net inflows of $2.3 billion in June
Vanguard UCITS ETF net flows: Month to date ($ million)
Source : ETFBook, as at 30 June 2023.
The Vanguard UCITS ETF range captured net inflows of $2.3 billion, with the majority of Vanguard UCITS ETFs recording positive flows. Flows were split between Vanguard’s equity UCITS ETF range ($1.5 billion), fixed income UCITS ETF range ($758 million) and multi-asset UCITS ETF range ($22 million).
This post is funded by Vanguard
1 Source: ETFBook, as at 30 June 2023.
2 Source: ETFBook, as at 30 June 2023.
Important risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.
Investments in smaller companies may be more volatile than investments in well-established blue chip companies.
ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid- offer spread which should be considered fully before investing.
Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.
The Funds may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund’s net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.
Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.
For further information on risks please see the “Risk Factors” section of the prospectus on our website at https://global.vanguard.com.
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