Amundi: ETF flows slow in March as investors turn defensive
14 APR, 2026
By Joanna Piwko from RankiaPro Europe
European UCITS ETF inflows slowed sharply in March 2026, as investors shifted toward more defensive positioning amid rising geopolitical tensions linked to the U.S.–Israel–Iran conflict.
Inflows drop after record start to the year
Net inflows fell to €10.6 billion in March, down from €48 billion in February and €46.9 billion in January.
Despite the slowdown, Q1 remained strong overall with €105.8 billion, well above the same period last year.
Equities: focus on global diversification
Equities led flows with €9.5 billion, but investors clearly favored broad, diversified exposure:
- Global strategies attracted €6 billion
- Europe saw solid inflows (€3.7 billion)
- Emerging markets stalled due to a strong dollar
Sector positioning reflected the macro backdrop:
- Inflows into energy, industrials, and defense
- Significant outflows from financials
Fixed income: safety first
Fixed income flows fell to €500 million, reflecting a clear shift toward more cautious positioning. Investors increasingly favored safer segments of the market, with strong demand for cash alternatives and ultra-short duration bonds, which offer greater protection in uncertain rate environments.
At the same time, riskier areas such as high yield and emerging market debt experienced outflows, highlighting a broader move away from credit risk. This positioning underscores ongoing uncertainty around interest rates and expectations of tighter financial conditions.
ESG remains resilient
ESG fixed income stood out, attracting €606 million, even as traditional investment-grade credit saw outflows — highlighting continued structural demand.
Bottom line
March marked a clear shift in investor behavior, with a stronger emphasis on diversification in equities and a move toward shorter duration and higher liquidity in fixed income. Overall, portfolios are becoming more defensively positioned in response to heightened uncertainty.
In this environment, ETFs continue to prove their value as flexible tools, allowing investors to quickly adapt their allocations as market conditions evolve.
