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Value of London-listed ETFs surpasses £1trn for the first time


The total value of London-listed ETFs surpassed £1trn for the first time in February, according to data from LSEG Lipper. Total net flows for the month were £6.43bn, with total ETF assets growing by £38bn.

Dewi John, head of UK and Ireland research at LSEG Lipper, explained this jump was due to a "combination of inflows and market moves".

February's results were "barely half" of the total flows seen the previous month, John said, but caveated that January "exceeded the highest monthly inflows for 2023", setting a high watermark for the following period.

Equities dominated throughout the month in terms of both net inflows and the theme of the top selling products, the report found.

Equity funds took the lion's share of February's fund flows, adding £8.8bn. They were joined only by money market funds in terms of positive net inflows.

Bond ETFs suffered the largest outflows overall, shedding £1.7bn, which John said was due to long-duration bonds and rate-sensitive sectors suffering the impact of rising long yields in the US, UK and Euro.

Mixed assets continued its outflow trend, with £626m exiting. John said this was "significant, given the low total net assets" in the sector.

In terms of global classification, global equities continued to dominate, with Equity Global ETFs taking the largest share of the flows (£4.7bn), with US Equity in second place (£2.9bn).

Lipper noted a rebound into Chinese equities, which it said was "supportive of emerging markets", and a reverse on the previous month when Equity China had the biggest outflows.

Of the top five individually sold products, iShares took three spots, with the iShares Core MSCI World UCITS ETF USD posting the highest inflows, at £1.2bn.

HSBC MSCI World UCITS ETF USD and Amundi MSCI World V UCITS ETF took the other two spots, netting £778m and £438m, respectively.

At a firm level, DWS attracted the largest number of assets, at £1.19bn, "with strong flows to equity products (£1.3bn)".

Vanguard came in second and took in £1.17bn, with £747m in equity flows and £418m in bonds.