The strong inflows into the European ETF industry over the course of May (+€36.8 bn) proved the trend of elevated inflows into ETFs in 2026 compared to previous years. The estimated net inflows for March were above the rolling 12-month average flows (€34.1 bn). Given the positive but volatile market environment, these inflows showcase that European ETF investors were in risk-on mode in May.
In addition to this, it is noteworthy that the general fund flow trend for the year is still set to reach a new all-time high on an annual basis at the end of the year despite the relatively low inflows into ETFs over the course of March. This shows that the popularity of ETFs among European investors is still growing despite the already higher inflows over the course of the years 2024 and 2025.
The inflows in the European ETF industry for May were driven by equity ETFs (+€24.2 bn), followed by bond ETFs (+€9.9 bn), money market ETFs (+€2.5 bn), commodities ETFs (+€0.2 bn), alternatives ETFs (+€0.1 bn), and mixed-assets ETFs (+€0.02 bn).
Graph 1: Estimated Net Sales by Asset Type, May 1 – May 31, 2026 (EUR Billions)
Source: LSEG Lipper
Given the general market environment, it was not surprising to see that the estimated net inflows into ETFs were led by equity ETFs over the course of the month. In combination with the inflows into bond ETFs, this might be seen as a sign that European investors are in risk-on mode.
The net inflows of the 10 best-selling Lipper classifications accounted for €30.0 bn. In line with the overall sales trend for May, equity peer groups (+€23.2 bn) dominated the flows by asset type on the table of the 10 best-selling peer groups by estimated net inflows.
It was surprising to see Bond USD Government (+€1.1 bn) on the table of the 10 best-selling classifications for the month given the overall concerns on the amount of outstanding debt and the impact of possibly increasing interest rates in the U.S. That said, since Bond Global USD (+€1.3 bn) enjoyed even higher inflows, it looks like European ETF investors are expecting the U.S. dollar to stay strong against the euro.
Graph 2: Ten Best- and Worst-Lipper Global Classifications by Estimated Net Sales, May 1- May 31, 2026 (EUR Billions)
Source: LSEG Lipper
Given the overall fund flow trend in the European ETF industry, it was not surprising that Equity Global (+€13.9 bn) was the best-selling Lipper global classification for May. It was followed by Equity U.S. (+€7.4 bn), Money Market EUR (+€1.7 bn), Bond Global USD (+€1.3 bn), and Equity Sector Information Technology (+€1.2 bn).
Generally speaking, it is surprising that Equity Europe was not on the table of the 10 best-selling Lipper classifications. In fact, Equity Europe (-€0.8 bn) was the Lipper global classification with the second highest outflows for the month. Since May 26 was the second month in a row with outflows from Equity Europe, it needs to be observed if the outflows will continue, as this would mean the trend toward European equities is broken. Conversely, it was surprising to see Equity U.S. in one of the top spots on the list over the course of May given the combination of political uncertainties and high valuations of the market in general.
After the relatively strong inflows into money market products over the last 18 months, it is not surprising to see Money Market EUR (+€1.7 bn) on the table of the 10 best-selling Lipper Global Classifications in the European ETF industry for the month.
More generally, these numbers showed the European ETF segment is also highly concentrated when it comes to fund flows by Lipper classification. Generally speaking, one would expect the flows into ETFs to be concentrated since investors often use ETFs to implement their market views and short-term asset allocation decisions. These products are made and, therefore, are easy to use for these purposes.
On the other side of the table, the 10 classifications with the highest estimated net outflows for May accounted for €4.4 bn in outflows, which was slightly above the outflows for April (-€4.0 bn).
Equity Switzerland (-€1.2 bn) was the classification with the highest outflows for the month. It was bettered by Equity Europe (-€0.8 bn), Equity Korea (-€0.6 bn), Bond USD Short Term (-€0.4 bn), and Commodity Precious Metals (-€0.3 bn).
As one may expect from the numbers on both sides of the table, the European ETF industry witnessed somewhat concentrated flows over the course of May 2026, with no clear remarkable trends underneath.
The views expressed are the views of the author, not necessarily those of LSEG.
This article is for information purposes only and does not constitute any investment advice.
