Global ETFs garner $61bn inflows in September

Global ETFs continued to receive strong net inflows in September, gaining $61bn.

According to LSEG Lipper's latest Global ETF Industry Review, the global ETF industry sector holds around $10bn in assets under management, as of 30 September, with equity ETFs experiencing the highest estimated net inflows during the month, at $44.9bn.

ETFs domiciled in North America maintained its popularity with investors from August, with the region receiving over half of all inflows throughout the month, approximately $39.5bn.

Equity US was the best-selling Lipper Global Classification in September, gaining $28.7bn, over half of what the category gained in the first six months of the year combined.

Vanguard continued the trend of being the best-selling ETF promoter globally, as it had been in the first half of 2023, bringing in $11.3bn.

Contribution of UK-listed active ETFs to total flows halves in September 2023

Detlef Glow, head of EMEA research at LSEG Lipper, said the overall inflows were "not surprising", but were notable, given the unstable market performance, with some asset classes performing negatively.

"The market sentiment was driven by hopes that central banks—especially the US Federal Reserve—may have reached the last phase of their fight against high inflation rates and may, therefore, start to keep interest rates at least stable quite soon," he said. 

"Some investors already expect that there might be room for decreasing interest rates later this year, but these expectations might be too positive given the hawkish statements from the Fed and other central banks such as the European Central Bank and the Bank of England.

"In addition, there are still concerns about the war in Ukraine and other geopolitical tensions. Investors are also concerned about the normalisation of the disrupted delivery chains. Even as China seems to be back on track after reopening its economy, there are still some frictions, especially in the real estate sector, in the system."