- Europe-domiciled ETFs attracted $12.8 billion of assets in March, with both equity and bond ETFs seeing inflows.
- Equity ETFs collected $10.8 billion in new assets, while fixed income exposures saw $1.1 billion of net inflows.
- The Vanguard UCITS ETF range captured net inflows of $490 million in March, with the majority recording positive flows.
Monthly recap: ETF inflows hit multi-year low amid geopolitical shock
After back-to-back months of record flows, investors paused to digest market volatility in March. The resulting monthly net inflows, of $12.8 billion, were the lowest we’ve seen since March 2024. Nevertheless, the $124.9 billion of net inflows in Q1 2026 still marks a new quarterly record, eclipsing the previous high (Q3 2025) by $20.1 billion.
A high degree of uncertainty, spurred by unrest in the Middle East, served as the main driver of risk-off investor sentiment last month. US and global equities fell -5.0% and -7.3% in March, respectively, while global aggregate bonds dropped by -2.0%1. Against this backdrop, we saw mixed ETF flow patterns.
Equity ETFs captured $10.8 billion of net inflows in March. Core ETFs again saw the highest inflows, with investors favouring global and euro area equity exposures. Smart beta and thematic equity ETFs also enjoyed a relatively a strong month.
Fixed income ETFs saw $1.1 billion of net inflows last month. Ultra-short maturity bond ETFs had a hefty $5.5 billion of net inflows – higher than any single month dating back to the start of 2024 – while inflation-linked bond ETFs also welcomed flows in March. On a regional basis, investors showed a preference for global and Japan bond ETFs.
Commodity and multi-asset ETFs enjoyed net inflows in March, while alternative ETFs suffered net outflows.
Total ETF market flows
ETF inflows slow amid market uncertainty
European ETF cumulative flows – cumulative 12 months by asset class ($ billion)
Source: ETFbook, as at 31 March 2026.
Equity ETFs
Core equity and smart beta ETFs prop up inflows
Equity flows by category: Month to date ($ million)
Source: ETFbook, as at 31 March 2026. 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.
Core equity ETFs continued to attract net inflows, adding $10.7 billion in March. Smart beta equity ETFs also saw inflows, gathering $4.0 billion last month, while thematic ETFs added $1.1 billion. Sector and segment ETFs weathered net outflows of -$2.1 billion and -$1.7 billion, respectively.
Global exposures pace equity ETF flows
Equity flows by geographic exposure: Month to date ($ million)
Source: ETFbook, as at 31 March 2026.
Global equity ETFs topped the table again, adding $6.3 billion of net inflows in March. Euro area and Switzerland equity ETFs followed, gathering $2.7 billion and $1.9 billion of inflows last month, respectively. A selection of single-country equity ETFs saw outflows. Most notably, China, Germany and US equity ETFs endured net outflows of -$1.0 billion, -$927 million and -$900 million, respectively.
Fixed income ETFs
Ultra-short maturity bond ETFs dominate flows
Fixed income flows by category: Month to date ($ million)
Source: ETFbook, as at 31 March 2026.
Ultra-short maturity bond ETFs far outpaced other fixed income categories, adding $5.5 billion of net inflows in March. Inflation-linked bond ETFs had net inflows of $1.0 billion. High-yield bond ETFs weathered net outflows of -$3.3 billion, while floating-rate, government and corporate ETF exposures endured net outflows of -$778 million, -$574 million and -$527 million, respectively.
Investors favour global bond ETFs
Fixed income flows by geographic exposure: Month to date ($ million)
Source: ETFbook, as at 31 March 2026.
Global bond ETFs attracted $2.2 billion of net inflows in March while Japan bond ETF exposures added $601 million. On the other side of the ledger, emerging market and UK fixed income ETFs suffered net outflows of -$1.8 billion and -$623 million, respectively.
Vanguard UCITS ETFs
Vanguard range sees net inflows of $490 million in March
Vanguard UCITS ETF net flows: Month to date ($ million)
Source: ETFbook, as at 31 March 2026.
The Vanguard UCITS ETF range captured net inflows of $490 million in March, with the majority recording positive flows. Inflows came mainly from Vanguard’s equity ETF range ($281 million) and the fixed income ETF range ($196 million). The multi-asset ETF range ($8 million) and cash ETF range ($5 million) also saw net inflows.
1 Source: Vanguard, data as at 31 March 2026. Reference indices are the S&P 500, FTSE All-World Index and Bloomberg Global Aggregate Float Adjusted and Scaled Index. Returns are net total returns in US dollars.
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