• Europe-domiciled ETFs attracted $19.6 billion of assets in April despite significant market volatility.
  
  
• Equity ETFs collected $16.8 billion in new assets, while fixed income exposures saw $2.5 billion of net inflows.
  
  
• The Vanguard UCITS ETF range captured net inflows of $4.3 billion in April, with the majority of ETFs in the range recording positive flows.

Monthly recap: After tariff volatility roiled markets, investors kept buying ETFs

Amid all the tariff-induced market gyrations in April, net inflows into Europe-domiciled ETFs continued, totalling $19.6 billion during the month. This brings the year-to-date tally to $111.5 billion (at this point last year, the total was $64.6 billion). Equity ETFs captured $16.8 billion of the net inflows in April, driven mainly by core equity exposures, while bond ETFs added $2.5 billion of inflows as investors continued to favour ultra-short maturity exposures. The continued inflows in April reinforce the trend of investors using ETFs to position when markets turn choppy.

We also saw a further acceleration of the rotation out of US equity ETFs and into other regions in April – namely developed-market, Europe and global exposures. US equity ETFs endured net outflows of -$1.8 billion during the month, following outflows of -$1.3 billion in March. Developed-market equity ETFs, on the other hand, saw net inflows of $4.5 billion. Europe, euro area, global and Germany equity ETF exposures all saw robust inflows as well.

Alternatives and multi-asset ETFs enjoyed net inflows in April while commodity ETF exposures saw net outflows.

Total ETF market flows

Investors digest tariffs news and continue buying ETFs

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

Source: ETFbook, as at 30 April 2025.

Equity ETFs

Core equity ETF flows surge despite volatility

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

Source: ETFbook, as at 30 April 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 to attract net inflows, adding a further $18.4 billion in April. In a distant second place, smart beta ETFs saw $1.4 billion of net inflows while options-based ETFs captured $814 million of flows. In terms of outflows, sustainable and segment ETF exposures weathered net outflows of -$2.5 billion and -$1.4 billion, respectively.

Investors rotate out of US equity ETFs amid tariff uncertainty

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

Source: ETFbook, as at 30 April 2025. The ‘world’ category excludes emerging markets.

Developed-market equity ETFs captured $4.5 billion of net inflows in April while Europe and euro area exposures saw $3.2 billion and $2.8 billion of inflows, respectively. Global equity ETFs also saw healthy net inflows, collecting $2.0 billion. US equity ETFs, meanwhile, weathered a third month of net outflows, as investors pulled -$1.8 billion in assets in April (following outflows of -$1.3 billion in March).

Fixed income ETFs

Demand for ultra-short maturity bond ETFs continues

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

Source: ETFbook, as at 30 April 2025.

Ultra-short maturity bond ETFs took in $3.7 billion of net inflows in April, capping four months of positive flows to start the year (following net inflows in each month of 2024). Government bond ETFs also welcomed net inflows last month, collecting $2.2 billion. On the negative side of the ledger, high-yield bond ETFs weathered net outflows of -$1.3 billion in April while corporate bond ETFs had net outflows of -$1.0 billion.

Investors again favour euro area bond ETFs

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

Source: ETFbook, as at 30 April 2025.

Euro area bond ETFs had the highest net inflows among fixed income products in April, collecting $2.1 billion in assets, marking four months of positive flows to start the year. Germany bond ETFs saw particularly strong net inflows, picking up $1.1 billion. Emerging market bond ETF exposures, on the other hand, endured net outflows of -$1.0 billion last month.

Vanguard UCITS ETFs

Vanguard range sees net inflows of $4.3 billion in April

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

Source: ETFbook, as at 30 April 2025.

The Vanguard UCITS ETF range captured net inflows of $4.3 billion in April, with the majority of ETFs in the range recording positive flows. Inflows were split between Vanguard’s equity UCITS ETF range ($4.3 billion) and multi-asset UCITS ETF range ($32 million), while the fixed income UCITS ETF range saw mild net outflows (-$17 million).
 

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