European Active ETF Flows Surge 64% from Q2 to Q3, According to HANetf’s Quarterly Market Report
23 OCT, 2024
By Jose Luis Palmer from RankiaPro Europe
HANetf has released the second edition of its Exchange-Traded Europe review, highlighting the significant growth in the European ETF market in Q3 2024. The report found that net flows into active ETFs surged by 64.23% from Q2 to Q3, bringing the total assets under management (AUM) for active ETFs to $49.29 billion.
Key Findings:
- European ETF Market Record: The overall European ETF market reached a record $2.16 trillion AUM, with year-to-date (YTD) net inflows of $183.48 billion.
- Active ETFs on the Rise: HANetf's survey indicated that 94% of investors would consider using ETFs for their active exposure. Active ETF flows have experienced a sharp increase, reflecting growing investor demand for these products.
- Equal Weighted ETFs: Gaining attention, 4 equal weighted ETFs ranked among the top 50 ETFs by flows in Q3, accounting for 10.6% of inflows—a notable rise compared to previous quarters.
- Options-Based ETFs: These products have gained popularity, with $578 million in net inflows YTD and $786.41 million AUM. Covered call strategies made up over a third of the inflows.
White-Label Enquiries Surge:
HANetf also reported a record number of 473 enquiries for new Exchange-Traded Product (ETP) launches so far in 2024, with over a sixth focused on active strategies. This represents a 70% increase from last year, with HANetf now hosting 5 active ETFs, including 4 new launches in 2024.
| HANetf Active ETFs | Ticker |
|---|---|
| Global Balanced Fund UCITS ETF | ROE |
| Guinness Sustainable Energy UCITS ETF | CLMA |
| Harbor Health Care UCITS ETF | WELL |
| Performance Trust Total Return Bond UCITS ETF | PTAM |
| Saturna Al-Kawthar Global Focused Equity UCITS ETF | AMAL |
The report underscores the rapid growth and evolving dynamics in Europe's ETF market, especially the increasing demand for active and specialized ETF strategies like equal weighted and options-based products.
We are delighted to be launching the second edition of Exchange-Traded Europe. Q3 saw significant milestones for the European ETF and ETC industry, with a new all-time high AUM for ETFs. The acceleration of inflows is exciting, but perhaps most notable is the diversification of strategies, such as the growth of active, and emergence of options based ETFs. In our view, this reflects changing sentiment around the ETF wrapper and the possibilities it offers. The days of ETFs being associated solely with passive investing are coming to a close, and giving rise to a new and varied range of strategies.
This is reflected in the white-label enquiries HANetf has received so far this year. Not only are more asset managers expressing interest in launching ETFs and ETCs, but the requests are also becoming far more diverse – with a greater share of active equity, fixed income, and options based enquiries. A broadening of the ETF universe arguably demonstrates the health of the industry, and its potential to adapt and evolve over the coming years.
Josh Palmer, Head of Business Development at HANetf
