Highlights
- Total estimated net inflows to mutual funds and ETFs reached €70.16bn in May, with mutual funds and ETFs contributing €33.37bn and €36.78bn, respectively
- Bond funds were the best-selling asset class (+€31.40bn), moving from third place in April to first place in May and pushing equities into second position (+€14.09bn)
- Money Market USD was the top-selling classification, attracting €15.98bn, a sharp reversal from April, while Money Market EUR moved into redemptions (-€5.06bn)
- Equity Global ranked second (+€10.71bn), driven by strong ETF demand, while Equity Emerging Markets Global moved into reverse (-€1.33bn)
- BlackRock was the month’s best-selling fund management company (+€18.04bn: +€7.05bn MF/+€10.98bn ETF)
Executive Summary
May saw a continuing uneasy balance between heightened geopolitical risk and macro uncertainty on the one hand, and a persistent risk-on sentiment on the other. The Middle East crisis continued to dominate the macro narrative, keeping volatility elevated and reinforcing risk-off behaviour in the early part of the month. Equity market leadership narrowed sharply, with performance again reliant on the secular AI theme, as more than half of gains in the FTSE All-World have been driven by fewer than 15 stocks since the market rebounded on 31 March.
At the same time, government yields rose as inflation expectations moved higher and central banks adopted a more hawkish tone. However, as hopes for a resolution to the conflict improved later in May, yields eased and equity participation broadened.
The former attracted large flows towards bond funds. Total estimated net inflows to mutual funds and ETFs reached €70.16bn, as bonds moved from third place in April to become the best-selling asset class in May (+€31.40bn). Equities ranked second (+€14.09bn), though that headline again masks the structural divide between product types: equity mutual funds suffered redemptions while equity ETFs attracted very strong inflows, showing that investors continued to favour liquid, low-cost implementation for risk exposure.
Liquidity demand also remained meaningful, with money market funds attracting €12.07bn. However, the classification picture showed a notable reversal from April. Money Market USD was the top-selling classification (+€15.98bn), while Money Market EUR flows turned red (-€5.06bn)—with the dollar slide in the rear-view mirror, US rates are looking attractive relative to Europe’s.
Equity Global remained strongly supported (+€10.71bn), driven by ETFs, while the previously popular Equity Emerging Markets Global moved into reverse (-€1.33bn), as Asian EM economies look to be relatively worse-hit by the energy shock that continues to feed through.
Asset Type Flows
Asset Type Flows May 2026
Chart 1: Estimated Net Flows by Asset and Product Type – May 2026 (€bn)
Source: LSEG Lipper
Total estimated net inflows to mutual funds and ETFs reached €70.16bn in May, with the most notable shift being the move of bonds from third place in April to the top of the asset-class ranking. Bond funds attracted €31.40bn, supported by solid mutual fund demand (€21.53bn) and a meaningful ETF contribution (€9.87bn), while May’s easing in yields helped the asset class.
Equities ranked second, gathering €14.09bn. However, that headline masks a sharp divergence by vehicle: equity mutual funds suffered redemptions of €10.08bn, while equity ETFs took in €24.18bn. In short, investors were still willing to hold equity beta, but overwhelmingly preferred liquid, low-cost exchange-traded implementation.
Money market funds also remained firmly positive (+€12.07bn), almost entirely through mutual funds, underlining the continued role of traditional liquidity products in cash management. Mixed assets gathered €9.87bn, again driven by mutual funds, while alternatives (+€2.45bn) and commodities (+€0.62bn) added more modest inflows.
By contrast, real estate remained under pressure, losing €0.70bn, entirely from mutual funds.
Asset Type Flows Year to Date
Chart 2: Estimated Net Sales by Asset and Product Type, Year to Date (€bn)
Source: LSEG Lipper
Year-to-date estimated net inflows to European mutual funds and ETFs reached €423.36bn, with equities remaining the dominant driver of 2026 flows. Despite the surge in demand for bond funds this month, YTD asset class rankings remain entirely unchanged from the previous month. It’s also notable that—with one exception—all asset classes are in positive territory.
Equity funds have attracted €154.66bn so far this year, but the underlying split is striking: mutual funds have shed €6.57bn, while ETFs have gathered €161.24bn. That divergence again highlights the structural migration towards exchange-traded equity exposure, with investors continuing to favour low-cost, liquid beta even as traditional equity mutual funds remain under pressure.
Money market funds ranked second, attracting €101.27bn, overwhelmingly through mutual funds (+€89.07bn). This underlines the continued importance of traditional liquidity products, even in a year when risk assets have drawn substantial inflows. Bond funds followed closely with €92.89bn, with demand spread across both mutual funds (+€57.25bn) and ETFs (+€35.64bn), suggesting investors remain willing to lock in income while using fixed income for portfolio ballast.
Mixed-assets funds gathered €60.28bn, almost entirely through mutual funds, reinforcing their role as core allocation products. Alternatives (+€11.92bn), commodities (+€3.49bn), and other funds (+€1.22bn) were also positive, though more modestly.
Real estate remained the clear laggard, with redemptions of €2.38bn, entirely from mutual funds. Overall, YTD flows show strong ETF-led equity demand, resilient cash allocations, and broad support for fixed income.
Fund Flows Active vs Passive Products
Chart 3: Total Net Assets by Product Type, €bn (LHS); Flows by Product Type, Year to Date, €bn (RHS).
Source: LSEG Lipper
By assets under management, the European fund industry remains dominated by actively managed mutual funds. Active mutual funds accounted for €13.86trn of assets, or 72% of the total, compared with €3.03trn in ETFs and €2.35trn in index-tracking mutual funds. In other words, despite the continued expansion of passive products, the industry’s asset base is still structurally anchored in traditional active vehicles.
The flow picture, however, demonstrates the growing importance of ETFs, particularly with risk assets, gradually eroding the dominance of mutual funds, both active and indexed. Year to date, ETFs have attracted €210.58bn, slightly ahead of active mutual funds at €201.40bn, while index mutual funds gathered a much smaller €11.38bn. That ETF leadership is overwhelmingly driven by long-term assets, where ETFs took in €198.39bn, compared with €114.27bn for active mutual funds and €9.43bn for index mutual funds.
By contrast, money market demand remained firmly concentrated in active mutual funds, which gathered €87.13bn, versus €12.19bn for ETFs and €1.94bn for index mutual funds.
Fund Flows by Lipper Global Classification
Fund Flows by Lipper Global Classification, May 2026
Chart 4: Ten Best and Worst Lipper Global Classifications by Estimated Net Sales, May 2026 (€bn)
Source: LSEG Lipper
May’s classification rankings were led by a sharp reversal in liquidity preferences. Money Market USD was the top-selling classification, attracting €15.98bn, almost entirely through mutual funds (+€15.25bn). That marks a clear switch from April, when Money Market EUR had led the table and Money Market USD sat at the bottom. By contrast, Money Market EUR moved to the bottom of the May rankings, with outflows of €5.06bn, despite ETF inflows of €1.71bn. A strengthening dollar would have worked in favour of USD MMFs, along with expectations of higher-for-longer US Fed base rates. Markets have clearly repriced the Federal US rate path, scaling back rate‑cut expectations as they wait to see how the new Fed chair will settle in.
Equity Global ranked second, gathering €10.71bn, although the underlying split again underlined the structural shift in implementation: ETFs attracted €13.87bn, with mutual fund outflows of €3.16bn. Fixed income demand was also prominent, with Bond Global USD attracting €6.29bn and Bond Global EUR adding €2.38bn, suggesting investors continued to favour diversified global bond exposure across both dollar and euro mandates.
Equity US gathered €3.44bn, entirely due to ETFs, while Equity Sector Information Technology attracted €3.16bn, reinforcing the continued appetite for US and technology-led equity beta. Since the global rebound from the end of March, after the initial Middle East energy shock, fewer than 15 names have contributed more than half of the total return of the FTSE All-World; all linked to the AI theme, according to FTSE Russell analysis. Mixed Asset EUR Flexible – Global and Mixed Asset USD Flexible – Global also remained positive, almost entirely through mutual funds.
At the weaker end, Equity Emerging Markets Global moved into reverse, losing €1.33bn after having been among the stronger year-to-date equity classifications. But, with the Asian Development Bank reporting that 15 countries were seeking emergency loans, this isn’t that surprising. The selling was concentrated in mutual funds, partly cushioned by ETF inflows. Equity Europe (-€2.59bn) and Equity Asia Pacific ex Japan (-€1.73bn) also suffered redemptions.
Overall, May showed rotation toward dollar liquidity, global bonds, and ETF-led developed-market equity exposure.
Fund Flows by Lipper Global Classification, Year to Date
Chart 5: Ten Best and Worst Lipper Global Classifications by Estimated Net Sales, Year to Date (€bn)
Source: LSEG Lipper
Year to date, the classification picture remains led by liquidity and broad equity exposures. Money Market EUR remains the best-selling Lipper Global Classification in 2026, with inflows of €75.95bn, despite its May reversal. Money Market USD (+€30.11bn) is supported by fairly consistent demand despite large April redemptions.
Equity Global ranks second, attracting €59.54bn, but the underlying split again highlights the structural migration towards ETFs. Mutual funds have gathered €8.26bn, while ETFs have taken in €51.28bn, making this one of the clearest examples of ETF-led equity implementation. Investors also signalled they were spreading their equity bets with €11.41bn going to Equity Global Income.
Equity Emerging Markets Global remains fourth year to date at €27.37bn, but its May reversal has taken some momentum out of the classification, and we may be witnessing the start of a reversal, with the impact of the energy shock taking some time to dissipate, even should the situation in the Middle East stabilise.
Fixed income demand is also well represented, with Bond Global USD gathering €18.89bn and Bond Emerging Markets Global LC attracting €10.45bn, with EM being one of the best-performing government bond markets YTD. Spreads have continued to tighten, although Corporate sectors continue to see inflows, the largest being Bond Global Corporates USD (+€7.43bn). The argument has been made that this is more due to the perceived growing risk of growing government debt, increasing the risk of these “risk-free” assets.
At the bottom of the table, Equity Europe ex UK redemptions (-€5.08bn) reflect UK investors’ lack of enthusiasm despite robust flows for Equity Europe (+€12.49bn), while Equity Asia Pacific ex Japan (-€39.26bn) languishes despite strong YTD performance.
Fund Flows by Promoter
Fund Flows by Promoter, May 2026
Chart 6: Ten Best-Selling Fund Promoters in Europe, May 2026 (€bn)
Source: LSEG Lipper
The 10 best-selling fund promoters in May accounted for €68bn of net inflows, accounting for more than 85% of the flows for the month.
BlackRock led the table with €18.04bn, driven predominantly by ETF inflows of €10.98bn, although mutual funds also contributed a sizeable €7.05bn. That’s worthy of note, as the company has tended to see ETF inflows combined with mutual fund outflows. JPMorgan ranked second with €8.29bn, almost entirely mutual fund-led, while HSBC followed closely at €8.22bn, again with demand concentrated in mutual funds.
DWS gathered €8.12bn, with a more balanced but ETF-tilted mix, while Vanguard attracted €6.95bn, led by ETFs. Goldman Sachs, State Street Investment, Invesco, Northern Trust, and Union Investment completed the top 10. Overall, May again showed ETF strength clustered around the largest passive franchises, alongside resilient mutual fund demand at diversified active houses.
Fund Flows by Promoter, Year to Date
Chart 7: Ten Best-Selling Fund Promoters in Europe, Year to Date (€bn)
Source: LSEG Lipper
The 10 best-selling fund promoters YTD accounted for €237.41bn of net inflows, underlining the continued concentration of European fund flows among a small group of global platforms.
BlackRock retained a commanding lead with €58.07bn, driven overwhelmingly by ETFs (+€55.06bn), although its strong May for mutual funds pushed the latter into the black. Amundi ranked second at €32.07bn, with a more balanced profile but still a strong ETF contribution. DWS followed with €29.49bn, split between mutual funds and ETFs, while Vanguard gathered €28.72bn, with ETFs again the larger driver.
HSBC, PIMCO, Northern Trust, and JPMorgan were more mutual fund-led, while State Street Investment and UBS Asset Management were dominated by ETF demand. Overall, the YTD promoter table again shows ETF flows concentrated among the largest passive franchises.
