ETF, the long ride of the replicants. One hundred billion more, in the black year –

In a difficult environment, unprecedented for financial markets due to the pandemic, ETFs (Exchange traded fund) have given proof of resilience, achieving, for the third consecutive year, a record collection, equal to 13% of the total collected by the universe of funds. Another fact worth noting is the surprising growth, accelerated by the pandemic, of Sustainable ETFs, which until a few years ago were still perceived as niche products, and which are now candidates to become the protagonists in the coming years. The ESG ETFs were the only type of replicants with a positive collection of 400 million euros even during the peak of market volatility last March. “Investors – comments Vincent Denoiseux, head of ETF Research and Solutions at Lyxor Asset Management – are increasingly aware of the role of ETFs in directing capital towards a more sustainable economy”.

Vincent Denoiseux, head of Etf Research and Solution di Lyxor Asset Management
Vincent Denoiseux, head of Etf Research and Solution di Lyxor Asset Management

ETF on climate, debut of two billion

According to Lyxor’s Money Monitor, the European replicator industry, after outflows of 11 billion euros in the first quarter of 2020, closed the year with a total collection of almost 90 billion (of which 45.5 went to the ESG ETFs). ), bringing the total assets just under one thousand billion euros (of which 86 billion asset ETF ESG), compared to a total of 870 billion euros in December 2019. Also worth noting is the result obtained by the climate ETFs, which at their debut immediately bought up two billion euros, demonstrating that climate change worries investors.

Equity ETFs are better

Going into the details of the assets, the Money Monitor notes that in 2020 the flows of ETFs domiciled in the Old Continent were driven by equities (total deposits of 55.3 billion), while bonds did not reach 33 billion. It seems that the pandemic has activated investors’ risk appetite. Thus, fixed income funds and replicants paid the highest price of the crisis, with record outflows of 144.7 billion euros in March 2020 alone. Only dollar-denominated government bonds were saved. role of asset shelter, raised € 120 million, while equity ETFs took off. After a phase of risk aversion, with significant outflows at the start of the pandemic, the arrival of reassuring news on vaccines supported the rally in risky assets, leading equity ETFs to raise € 34.7 billion in November and December. “Overall – explains Denoiseux – the data confirm that investor interest in ETFs has not decreased even in a period of strong turbulence such as that of the pandemic, which has also pushed the demand for ESG investments destined to become real standards. market “.

The success of the Etc on precious metals

These are the numbers of ETFs alone. If you look at the entire ETP category (Exchange traded products) Europeans, which also include the Etc (Exchange traded commodities), the overall collection of 2020, according to Morningstar, exceeded one hundred billion euros with a total assets of 1,053 billion, against 923 billion at the end of 2019. The result is mainly thanks to the Etc exposed to precious metals (in particular on gold ) which in 2020 raised over 13 billion. The assets of ETCs domiciled in the Old Continent thus rose to 83 billion from 60 in 2019. In summary, the entire category of ETPs domiciled in the Old Continent has just closed the second best calendar year of their short history with growing assets 14%.

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