Industry Updates

Vanguard sees strong ETF inflows in Q2 despite sell-off

Second-highest inflows behind BlackRock

Tom Eckett

a screenshot of a computer screen

Investors in Vanguard ETFs have a reputation for buying and holding which has been proven once again during the heightened volatility in Q2.

As markets sold off – highlighted by the S&P 500’s 16.3% fall over the past three months – investors in Vanguard’s European ETF range stayed the course and even saw opportunities to ‘buy-the-dip’.

According to data from Bloomberg Intelligence, Vanguard saw €3.7bn inflows in Q2, the second-highest across all ETF issuers, taking its European ETF range to €77.4bn assets under management (AUM).

Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence, told ETF Stream this is a sign the world’s second-largest asset manager is making significant inroads in Europe.

“During volatile markets, Vanguard investors tend to stay the course and their market share tends to pick up in those periods,” he added.

Vanguard is now the fifth-largest ETF issuer in Europe which is even more impressive given the US giant has just 28 ETFs listed across exchanges on this side of the pond. Its largest ETF is the Vanguard S&P 500 UCITS ETF (VUSA) which currently has $29.9bn AUM.

Leading the way once again was BlackRock which saw €8.9bn in new assets over the past quarter keeping it ahead of its nearest rival, Amundi, by some distance.

The world’s largest asset manager houses €587bn AUM in its European ETF range, as at the end of June, a 43.9% market share which is slightly up from Q1.

Elsewhere, UBS Asset Management, State Street Global Advisors and Invesco all had strong quarters with inflows of €1.6bn, €1.3bn and €1.2bn, respectively.

At the other end of the spectrum, it was a tough month for German asset manager DWS which suffered outflows of €1.8bn over the same period, driven mainly by redemptions from its US exposures.

The firm has had a tough quarter with CEO Asoka Woehrmann stepping down just hours after police raided its offices in relation to an ongoing investigation into potential prospectus fraud on its ESG strategies.

PIMCO also witnessed €1.3bn redemptions last quarter amid a challenging environment for fixed income strategies, in particular.

Its flagship product in Europe, the PIMCO US Dollar Short Maturity UCITS ETF (MINT), has seen 1.3bn €outflows alone over the past three months, as at 11 July.

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