Fixed income ETFs see highest inflows

European-listed ETFs providing exposure to fixed income saw net inflows of $1.5bn in June, while ETFs tracking European equities experienced $1.5bn in net outflows in this month.

The firm's latest ETF Landscape report shows net new assets into European domiciled ETFs and other exchange-traded products (ETPs) amounted to $2.6bn in June, with fixed income as an underlying asset class seeing the largest inflows.

ETFs based on emerging markets equities followed fixed income, receiving $1.3bn in net inflows in June

The report says year-to-date, net new assets in European domiciled ETFs and ETPs amounted to $24.4bn, with fixed income seeing the highest net inflows of $5.8bn, followed by commodities with $5.7bn.

The number of ETFs year-to-date has increased by 16.3%, with 135 new funds launched. The report says out of the 961 ETFs in Europe, the top 100 account for 67.2% of European ETF assets under management (AUM).

In terms of trading volume, the average daily amount in US dollars increased by 14.8% to $2.6bn. However, the report states that most of the ETF trades are not required to be reported in Europe, as ETFs are not covered by the European Union markets in financial instruments directive (Mifid).

The report shows iShares remains the largest ETF provider as at the end of the second quarter, with 173 ETFs, assets of $77.9bn and a market share of 35.7%. Lyxor follows, with 133 products, $41.6bn in AUM and 19.1% market share.

Db x-trackers have 135 ETFs, assets of $35.9bn and a 16.5% market share at the end of the second quarter.