Vanguard European ETF market review: European-domiciled ETFs began 2021 by registering $18.9 billion of inflows in January
Vanguard European ETF market review January 2021
European-domiciled ETFs registered their tenth consecutive month of inflows, with $18.9 billion in January.
Equity ETFs dominated the inflows with a total of $16.1 billion.
Fixed income ETFs saw positive net flows for the fourth month in a row.
European-domiciled ETFs began 2021 by registering $18.9 billion of inflows in January, their tenth consecutive month of inflows, amid heightened volatility and trading volumes in equity markets, particularly late in the month.
Equity ETFs captured the majority of inflows, with a total of $16.1 billion. The main winners in January were sustainable equity ETFs, capturing $8.2 billion, led by US exposures ($3.6 billion). World ($1.8 billion) and emerging-market ($1.0 billion) sustainable equity ETF exposures also saw net inflows.
Thematic equity ETFs gained net inflows too, with $3.6 billion, led by global exposures ($3.3 billion).
Fixed income ETFs saw inflows of $2.1 billion, with assets allocated relatively evenly across exposures to inflation-linked bonds ($762 million), aggregate bonds ($616 million), high-yield ($516 million) and government bonds ($710 million). Corporate bond ETF exposures saw outflows of $599 million during the month.
Commodity ETFs experienced inflows of $857 million, with the majority of flows invested in broad commodity exposures ($734 million) and non-agriculture exposures ($130 million).
Vanguard UCITS ETFs
The Vanguard UCITS ETF range captured inflows of $589 million in equities and $324 million in fixed income. Equity flows were mainly driven by inflows into the Vanguard FTSE All-World UCITS ETF ($504 million) and the Vanguard FTSE 250 UCITS ETF ($287 million). Fixed income ETF flows went largely into the Vanguard Global Aggregate Bond UCITS ETF ($234 million) and the Vanguard Eurozone Government Bond UCITS ETF ($40 million).