Exchange traded fund provider Lyxor ETF announced the release of its latest Money Monitor report, tracking flows in European open-ended funds and ETFs. According to the new report, flows into European ESG-themed ETFs have increased from their already record-setting pace, reaching €4.3bn of inflows in October.
ESG investing dominated ETF flows in the month, representing almost 90% of all ETF flows over the period. Year-to-date, ESG ETF inflows have now reached €28.3 billion, nearly 60% of all inflows into ETFs over the period of €48.4 billion.
By asset class, flows into both equity and fixed income ESG ETFs was strong, although momentum continues to pick up in particular into fixed income, with inflows reaching €1.0 billion, nearly a quarter of the total into ESG ETFs. Year-to-date, fixed income ESG ETFs have gathered €5.7 billion, or 20% of total inflows of the ESG ETF category.
The trend seen in ETFs is similar to that experienced in the broader European market. Lyxor ETF’s report finds that flows into sustainable investment funds and ETFs reached €30.1 billion in October, with year-to-date cumulative flows approaching €200 billion, on pace to nearly double prior year levels.