European fund flows demonstrate strong shift to ETFs
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European exchange traded funds have had net inflows this year even as open-ended mutual funds have suffered net outflows, a trend experts say is part of a long-term shift towards passive investment.
Open-ended mutual funds suffered outflows every month from February to August, while ETFs have recorded inflows every month except June and July, according to Morningstar Direct data.
“ETFs as a wrapper are widely considered to be superior,” he said.
“They’ve sailed through Covid and other crises, which strengthened their case when there were question marks about how these funds would work under certain conditions.”
He added that the difference in flows could be seen as something of a vote of no confidence in active managers.
This story originally appeared on: Financial Times - Author:Dominic Lawson
