• Europe-domiciled ETFs attracted $35.7 billion of assets in February, continuing the trend of strong inflows.
  
  
• Equity ETFs collected $25.6 billion in new assets, while fixed income exposures had $9.3 billion of net inflows.
  
  
• The Vanguard UCITS ETF range captured net inflows of $3.5 billion in February, with the majority of ETFs in the range recording positive flows. 

Monthly recap: Core equity ETF flows continue while bond ETF flows double

Europe-domiciled ETFs posted $35.7 billion in net inflows in February, more than any single month during a record-setting 2024. Core equity ETFs were again the primary driver of flows, gathering $16.0 billion. But fixed income ETF inflows doubled month-on-month to $9.3 billion in February—better than all but one month in 2024—as investors allocated into corporate and government bond ETF exposures.

In the US, policy uncertainty and worries around growth tarnished investor sentiment in February, pushing the S&P 500 down -1.3% for the month¹. In this context, US equity ETFs weathered net outflows in February of -$519 million – a sharp reversal from the $10.5 billion in net inflows the category captured in January. Investors instead turned to developed market, Europe and global equity ETF exposures as well as US and euro area bond ETFs.

For the second month in a row, multi-asset, alternative and commodity ETFs all enjoyed net inflows.

Total ETF market flows

Flows accelerate – especially among bond ETFs

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

Source: ETFbook, as at 28 February 2025.

Equity ETFs

Core equity ETFs capture majority of flows

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

Source: ETFbook, as at 28 February 2025. 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 continued attracting net inflows, adding a further $16.0 billion in February. In a distant second place, sector ETFs saw $2.8 billion of net inflows while market access and thematic ETFs captured $2.6 billion and $1.6 billion of flows, respectively. For a second straight month, we saw no meaningful net outflows among the categories we track.

Investors favour developed market and Europe equity ETFs

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

Source: ETFbook, as at 28 February 2025. The ‘world’ category excludes emerging markets.

Developed market ETFs gathered $6.2 billion of net inflows in February while Europe and global ETF exposures added $4.1 billion and $3.9 billion, respectively. UK equity ETFs, meanwhile, weathered net outflows of -$646 million. In a notable reversal, US equity ETFs had -$519 million of net outflows in February following net inflows of $10.5 billion in January.

Fixed income ETFs

Corporate bond ETFs top the table

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

Source: ETFbook, as at 28 February 2025.

Corporate bond ETFs took in $3.2 billion of net inflows in February, followed by government and ultra-short maturity bond ETF exposures, which each added $2.3 billion of net assets. In a broadly positive month for bond ETF flows, we saw no meaningful net outflows across the categories we track.

Investors favour US and euro area bond ETFs

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

Source: ETFbook, as at 28 February 2025.

US and euro area bond ETFs had the highest net inflows in February, collecting $3.4 billion and $3.3 billion, respectively. Global bond ETF exposures had $1.4 billion of net inflows. We saw limited net outflows across the categories we track.

Vanguard UCITS ETFs

Vanguard range sees net inflows of $3.5 billion in February 

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

Source: ETFbook, as at 28 February 2025.

The Vanguard UCITS ETF range captured net inflows of $3.5 billion in February, with the majority of ETFs in the range recording positive flows. Inflows were split between Vanguard’s equity UCITS ETF range ($1.9 billion) and fixed income UCITS ETF range ($1.5 billion), while the multi-asset UCITS ETF range saw net inflows of $66 million.
 

¹ Net total return in USD.

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