The collection of ETFs domiciled in Europe is growing, which recorded net flows of 44.3 billion dollars in May, up by 2.1 billion compared to the positive balance in April. This is what emerges from the monthly summary of the flows of the European ETF market by Vanguard, edited by David Hsu, Head of Index Equity and ETF Product Specialism at Vanguard Europe.
The figure for the month was split between a contribution from the equity sector of 28.3 billion dollars and one from the bond sector of 15.6 billion dollars. According to the analysis, the market environment remained constructivewith continued strength in share prices accompanied by the decline in oil prices and bond yields, following signs of an easing of geopolitical tensions.
The good performance of the stock sector
Equity ETF collections stood at $28.3 billion. In particular, the core category which represents the main global indices of developed and emerging countries, attracted inflows of 20.1 billion dollars, slowing down slightly after the record figure in April, but maintaining first place in collections. Positive monthly balances, albeit distant, were also recorded by the sustainable, thematic and smart beta categories. Outflows in the monitored categories were marginal.
On a geographical level, exposures to global markets drove collections with inflows of 13.0 billion dollars, exceeding the 10 billion threshold for the second time in the monthly figure. This is followed by exposures to US equities, with a balance of $9.0 billion, a level that had only been exceeded on two occasions since the beginning of 2025, and exposures to developed markets, with $6.3 billion. On the opposite front, Swiss stocks recorded outflows of 1.4 billion dollars and Euro Area stocks recorded a negative balance of 1.1 billion dollars.
The bond sector is also running
Bond ETFs raised $15.6 billion in May, up significantly from $10.0 billion in April. The flows were mainly directed towards government bonds, with a balance of 4.9 billion dollars, followed by corporate bonds (3.6 billion) and ultra-short-term bonds (2.7 billion). Also in this case, no significant outflows were observed in the monitored categories.
By geographical area, exposures to the Euro Area attracted inflows of 6.9 billion dollars, maintaining first place in investors’ choices, followed by exposures to global markets (3.2 billion) and the United States (3.1 billion).
Alternative ETFs are good
According to the iFine analysis, alternative ETFs, products that invest in commodities and multi-assets recorded positive collection data in the month under review.
