ETFs tracking European equity indices attracted over €1bn in investor money in the week ending 10 December, according to Deutsche Bank.
The provider's latest exchange-traded product research shows all major European equity indices closed out the week ending 10 December on sharp gains. The CAC 40 up almost 3%, the Eurostoxx 50 also rose 2.1%, the FTSE 100 went up 1.2% and the DAX rose 0.8%.
These two trends boosted European ETF assets under management (AUM) by over €2.3bn over the same week.
With continuing healthy inflows of €365m to emerging market funds, European equity ETFs finished the week with assets of nearly €144.7bn, a year-to-date increase of 31.2%.
Weekly inflows across all asset classes totalled €2.1bn, up from €1.3bn in the previous week, with equity products seeing a total of €1.7bn.
Deutsche says these flows mark the week as one of the strongest of 2010, boosted by flows of €106m into fixed income and €258m into commodities.
Altogether, European ETP AUM has now risen by 33.7% to reach €226.8bn. A significant portion of the €57.1bn growth has come from ETCs, which have expanded 60% this year so far.
Commodities have been bolstered by the strong performance of precious metal funds, which have seen cash flows of €5.9bn this year. Almost €5bn of this has come from gold, which saw its popularity continue with inflows of €133m last week, despite the euro price of gold falling 0.6%.
Fixed income, which with a yearly asset growth of 19.2% is the worst performing ETP asset class, lost €75m from corporate benchmarked ETFs but took €173m in money market funds.
Despite relatively muted net flows, fixed income products topped the tables for biggest individual losers and gainers. An ETFlab product on the German Money Market attracted nearly €263m, while the db x-trackers II EONIA TR Index ETF lost €90m.
Amongst product providers, Lyxor topped the leader board for net cashflows, attracting €422m into its products over the week. This performance helped reorder the ETP AUM rankings by issuer once again.
For the week ending 3 December, Deutsche Bank had itself settling in second place with €36,579m under management ahead of Lyxor on €36,338m; last week these positions were reversed, with Lyxor back in second on €37,078m AUM, €51m more than Deutsche Bank.
As ETPs continue to attract steady flows, last week saw the introduction of eleven new products, eight on the London Stock Exchange. Among these launches were two ETFs from HSBC, three single country emerging market ETFs from Source, and three industrial metal ETFs from ETF Securities.
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