According to BNP Paribas, ETF inflows are anticipated to surpass €100 billion in 2023 as the asset class has gained popularity among individual investors and financial advisors in Europe.
The company said that ETFs performed well in 2022, recording inflows of €67 billion in collaboration with Quantalys Harvest Group.
This pattern persisted in 2023, when ETF inflows totaled €40 billion in the first three months, compared to flat net inflows for actively managed funds.
According to the survey, financial advisors are using ETFs in their fund selection more frequently, which has increased inflows into the asset class.
Digital platforms like online brokers and finance applications are making ETFs more appealing to individual investors.
"Our client base is also expanding, helped by the growth drivers of private banking and wealth management. In particular, this is due to digital platforms, which are very popular with millennials and allow savers to familiarise themselves with ETFs," according to Lorraine Sereyjol-Garros, global head of ETF at BNP Paribas.
The number of ETFs in contracts is rising as ETFs become more and more popular on the French market for life insurance.
According to the study, from 2021 to 2022, contracts with at least one ETF rose from 38% to 44%.
In 2022, these contracts made reference to an average of 31 ETFs, up from 20 in 2021, a 55% increase.
ETF inflows surged as a result of the rising popularity of ESG ETFs.
ESG ETFs saw net inflows of €44 billion in 2022, compared to €24 billion for non-ESG ETFs.
BNP Paribas predicts that inflows into ETFs will continue to rise in 2023 and surpass €100 billion as a result of ETFs' rising popularity.
By fLEXI tEAM