- The equity rally pushed ETF assets in Europe to a record level
- But it was also the year of government bonds
- Sustainable ETFs proved less popular as before
The end-of-year rally changed the market narrative of 2023 in many ways, transforming a lukewarm year for certain investors into a solid one. This was also the case for exchange traded fund (ETF) flows across Europe, particularly into stock market vehicles, which picked up significantly in the last three months of the year.
European investors poured €45.7bn (£39bn) into ETFs and exchange traded commodities (ETCs) between October and the end of December 2023, up from €31.4bn in the third quarter of the year and €28.1bn in the second, according to Morningstar data. The total for the year amounted to €143.9bn, the second-highest ever for the market – only 2021 was stronger. Helped also by market performance, European ETFs closed the year with record assets under management of €1.6tn.