Partner Insight: Vanguard ETF market review - inflows grow in July

Total ETF market flows

Bond and equity ETFs continue to see robust inflows in 2023

European ETF cumulative flows - cumulative 12 months by asset class ($ billion)

Source : ETFBook, as at 31 July 2023.

Equity ETFs

Core equity exposures again the most popular in July

Equity flows by category: Month to date ($ million)

Source: ETFBook, as at 31 July 2023. The ‘segment' category includes equity exposures which target specific market capitalisation segments, such as small-cap, mid-cap and large-cap. The ‘market access' category includes difficult-to-access markets such as emerging markets. The ‘basket' category includes strategies that combine several stocks as the underlying exposure, such as FAANG stocks.

Core equity ETFs were again the top contributor in July, contributing $3.9 billion in net inflows. Sustainable equity strategies were the second-most popular category, garnering $2.3 billion in net inflows. Equity sector products, meanwhile, saw -$230 million of net outflows during the month.

Investors demand US equity exposures 

Equity flows by geographic exposure: Month to date ($ million)

Source : ETFBook, as at 31 July 2023.

United States exposures ($4.3 billion) attracted the most inflows within equity ETFs, followed by World (which doesn't include emerging markets) ETFs, which saw $2.9 billion in net inflows. Europe equity ETFs were the least popular category, as they saw -$1.0 billion in net outflows.

Fixed income ETFs

Government bond ETFs continue to lead fixed income flows

Fixed income flows by category: Month to date ($ million)

Source : ETFBook, as at 31 July 2023.

Government ($4.3 billion) and corporate ($2.0 billion) bond ETFs continued to be the biggest contributors to net fixed income inflows, while inflation-linked fixed income products saw the largest outflows (-$79 million).

US bond exposures top investor wish lists

Fixed income flows by geographic exposure: Month to date ($ million)

Source : ETFBook, as at 31 July 2023.

United States products ($3.6 billion) attracted the most inflows within fixed income ETFs in July, while United Kingdom and eurozone ETFs also benefitted from inflows, with $1.7 billion each. Australia bond ETFs saw the largest net outflows, with -$48 million.

Vanguard UCITS ETFs

Vanguard range sees net inflows of $1.5 billion in July

Vanguard UCITS ETF net flows: Month to date ($ million)

 

The Vanguard UCITS ETF range captured net inflows of $1.5 billion, with the majority of Vanguard UCITS ETFs recording positive flows. Flows were split between Vanguard's equity UCITS ETF range ($849 million), fixed income UCITS ETF range ($641 million) and multi-asset UCITS ETF range ($22 million). 

¹ Source: ETFBook, as at 31 July 2023.

Our most-popular ETFs in July:

Vanguard S&P 500 UCITS ETF

Vanguard FTSE All-World UCITS ETF

Vanguard USD Corporate Bond UCITS ETF

 

 

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