- Total estimated net inflows to European mutual funds and ETFs reached €87.12bn in August, with equities leading the asset-class rankings (+€44.18bn)
- Equity demand remained heavily ETF-led, with exchange-traded products gathering €35.49bn versus €8.70bn for mutual funds, as global equities advanced on resilient activity and strong corporate earnings
- Money Market USD was the month’s best-selling classification (+€18.76bn), reversing July’s weakness, while Equity Global (+€14.54bn), Equity US (+€11.77bn), and Equity Emerging Markets Global (+€6.15bn) led risk-asset demand
- Money Market GBP (-€5.15bn) and Money Market EUR (-€4.67bn) suffered the heaviest redemptions
- Rising government yields favoured shorter-duration fixed income: Bond Global Short Term attracted €2.12bn as broader USD bond classifications moved into outflows
Executive Summary
August saw another positive month for European fund flows against a backdrop that combined resilient risk appetite with continuing pressure in government bond markets. Global equities advanced as corporate earnings and economic activity remained supportive, with leadership broadening beyond software and AI beneficiaries into cyclical industries such as materials and energy, according to FTSE Russell analysis. Fixed income told a rather different story: government bond yields continued to climb on concerns around fiscal sustainability, sovereign issuance and inflation. Meanwhile, the US dollar depreciated against most major currencies, including sterling and the euro.
Against that backdrop, mutual funds and ETFs attracted €87.12bn in August, with every major asset class in positive territory. Equities were the best-selling asset class (+€44.18bn). However, the equity headline again masks a pronounced vehicle split: ETFs gathered €35.49bn, compared with €8.70bn for mutual funds. Investors were therefore adding risk decisively, but continued to favour exchange-traded implementation. That sits with the broader longer-term picture, where ETFs have accounted for most equity inflows.
Bonds attracted €13.21bn, split between €7.77bn into mutual funds and €5.44bn into ETFs, while mixed assets attracted a similar €12.53bn, almost entirely through mutual funds. With sovereign yields moving higher over the month, fixed income flows suggest investors remained willing to allocate to the asset class, although classification data point to a clear preference for shorter-duration exposure.
Money market funds attracted €11.83bn, suggesting that greater willingness to participate in rising equity markets did not come at the expense of cash buffers. Money Market USD was August’s best-selling classification (+€18.76bn). That represents a sharp reversal from July and contrasts strikingly with Money Market GBP (-€5.15bn) and Money Market EUR (-€4.67bn), the two weakest classifications of the month. The divergence is notable given that sterling and the euro both appreciated against the dollar in August; nevertheless, investors clearly favoured dollar-denominated liquidity.
Equity buying was broad. Equity Global gathered €14.54bn, with ETFs accounting for €13.17bn, while Equity US attracted €11.77bn and Equity Emerging Markets Global €6.15bn. Equity Sector Information Technology also remained in demand (+€4.45bn), broadly consistent with a month in which technology continued to contribute positively even as market gains broadened into cyclical sectors. By contrast, Equity UK saw redemptions of €1.85bn—as usual, from domestic selling.
In fixed income, Bond Global Short Term attracted €2.12bn, while Bond USD (-€0.95bn), Bond Global USD (-€1.03bn), and Bond USD Government (-€1.31bn) all saw redemptions.
Asset Type Flows
Asset Type Flows August 2026
Chart 1: Estimated Net Flows by Asset and Product Type – August 2026 (€bn)
Source: LSEG Lipper
August combined strong ETF-led equity buying with substantial demand for cash and more measured allocations to bonds and mixed assets. Total estimated net inflows to European mutual funds and ETFs reached €87.12bn in August, split almost 50/50 between mutual funds and ETFs.
With global equities surging at the start of August, the asset class continued to attract the largest share of flows, gathering €44.18bn (ETFs: +€35.49bn/MF: €8.70bn). The continued skew towards exchange-traded vehicles reinforces the structural preference for ETFs when investors add equity exposure, a recurring feature of flows.
Bonds also enjoyed a solid month, gathering €13.21bn (+€7.77bn MF/+€5.44bn ETF), while mixed-assets funds attracted a similar €12.53bn, almost entirely through mutual funds. Alternatives (+€2.56bn) and real estate (+€2.41bn) saw more modest inflows, with both dominated by traditional mutual fund products. Commodities added €0.45bn, supported by ETF demand despite small mutual fund redemptions.
Money market funds attracted €11.83bn, as investors added risk while simultaneously building cash positions, suggesting that greater equity participation did not come at the expense of liquidity buffers.
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 €695.15bn, with all asset classes in positive territory. ETFs accounted for €314.14bn of total inflows, compared with €381.02bn for mutual funds, although that aggregate split masks a much sharper divergence across asset classes.
Equities have gathered €259.06bn YTD, with the overwhelming majority flowing into ETFs (+€243.35bn), compared with just €15.71bn for mutual funds: more than 90% of net equity buying has been implemented through ETFs.
Bonds rank second, attracting €170.72bn, with mutual funds accounting for the larger share (+€117.57bn MF/+€53.15bn ETF). Money market funds follow at €110.95bn, again overwhelmingly driven by mutual funds (+€96bn), while ETFs contributed a comparatively modest €14.95bn. Taken together, the strength of bond and money market demand suggests investors have continued to balance substantial equity allocations with liquidity and income-generating exposures.
Mixed-assets funds have gathered a further €95.43bn, almost entirely through mutual funds (+€95.06bn), while alternatives attracted €22.26bn. Commodity funds were also positive at €7.29bn, with mutual funds accounting for roughly three-quarters of flows. “Other” funds (+€0.96bn) and real estate (+€0.79bn) made only marginal contributions.
Overall, ETFs dominate equity allocations, while mutual funds retain their commanding position in money markets, mixed assets, and alternatives.
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 total net assets, actively managed mutual funds continue to dominate the European fund industry, accounting for €14.13trn, or around 71% of total assets. ETFs represent €3.21trn, or 16%, while index-tracking mutual funds account for €2.47trn, or 13%. The asset base therefore remains firmly anchored in traditional active vehicles despite the continued expansion of passive products.
The year-to-date flow picture is rather different. Active mutual funds have attracted €296.93bn, marginally behind ETFs at €314.14bn, while index mutual funds gathered €56.38bn. However, that headline masks a significant difference in the composition of demand. Active mutual fund flows continue to receive considerable support from money markets, which have attracted €110.95bn YTD through this vehicle.
Within long-term assets, ETFs are comfortably the dominant product type, gathering €299.18bn, compared with €206.81bn for active mutual funds and €50.51bn for index mutual funds. Indeed, almost all ETF flows have gone into long-term assets, consistent with the exceptionally strong ETF-led equity demand seen over the year. By contrast, money market demand remains overwhelmingly concentrated in active mutual funds: €117.82bn compared with €5.88bn for index mutual funds and €14.95bn for ETFs.
Fund Flows by Lipper Global Classification
Fund Flows by Lipper Global Classification, August 2026
Chart 4: Ten Best and Worst Lipper Global Classifications by Estimated Net Sales, August 2026 (€bn)
Source: LSEG Lipper
August’s rankings point to strong demand for dollar cash alongside ETF-led global and US equity exposure, while higher yields appear to have favoured shorter-duration fixed income over broader government and dollar bond allocations. Rankings were dominated by dollar liquidity and broad equity exposures against a market backdrop in which global equities advanced on resilient economic activity and strong corporate earnings, while government bond yields continued to rise.
Money Market USD was the best-selling classification, attracting €18.76bn (+€18.16bn MF/+€0.60bn ETF). By contrast, this classification saw July’s heaviest outflows. That strength sits in sharp contrast to Money Market EUR (-€4.67bn) and Money Market GBP (-€5.15bn), which were the two weakest classifications over the month. The divergence is particularly notable given that both the euro and sterling appreciated against the US dollar in August: investors were clearly favouring dollar liquidity despite the currency move.
Equity demand was broad and, in most cases, strongly ETF-led. Equity Global gathered €14.54bn (despite seeing heavy UK outflows over the month), with ETFs accounting for €13.17bn, while Equity Global Income also gathered €3.07bn.
Equity US attracted €11.77bn (+€3.73bn MF/+€8.03bn ETF), while Equity Emerging Markets Global also saw healthy inflows of €6.15bn, although here mutual funds attracted most cash. Equity Europe added €2.40bn despite modest mutual fund redemptions, with ETF inflows of €2.46bn more than compensating.
Sector flows broadly chimed with August’s market leadership. Equity Sector Information Technology attracted €4.45bn, split relatively evenly between mutual funds and ETFs, as software and AI beneficiaries continued to perform strongly. The former is consistent with a month in which technology contributed positively across regions, while gains also broadened into cyclical sectors such as materials and energy.
In fixed income, Bond Global Short Term attracted €2.12bn, overwhelmingly through mutual funds, while Bond USD (-€0.95bn), Bond Global USD (-€1.03bn), and Bond USD Government (-€1.31bn) all suffered redemptions. That preference for shorter-duration exposure is consistent with August’s bond-market backdrop: government yields continued to climb amid concerns over fiscal sustainability, sovereign issuance, and inflation, with duration once again underperforming.
Elsewhere, Equity UK saw outflows of €1.85bn, while Equity Asia Pacific ex Japan (-€0.64bn), Equity Turkey (-€0.63bn), and Equity India (-€0.51bn) also saw more modest redemptions.
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 classification flows remain dominated by broad equity exposures and money market products, with Equity Global comfortably leading the rankings. The classification has attracted €104.68bn so far in 2026, overwhelmingly through ETFs (+€91.54bn), compared with €13.14bn for mutual funds.
The trend towards equity ETFs is evident in Equity US (+€40.86bn) and Equity Emerging Markets Global (+€33.33bn), where the vehicle accounted for the majority of inflows. Equity Europe has gathered a further €15.57bn, again predominantly through ETFs. Equity Global Income is something of an exception, with its €20.29bn of inflows divided more evenly between mutual funds and ETFs, suggesting reviving demand for income-oriented equity strategies alongside broad beta.
Liquidity nevertheless remains a major part of the YTD picture. Money Market USD has attracted €54.45bn, leapfrogging Money Market EUR in the rankings, which has taken in a further €50.21bn. Taken together, the two classifications have gathered more than €104bn, equalling Equity Global flows and highlighting the extent to which investors have retained substantial cash allocations even as equity flows have remained strong.
There is a pronounced tilt to USD assets in the data, except for Bond USD (-€5.43bn). Bond Global USD has gathered €24.90bn, with mutual funds accounting for around two-thirds of the total. Mixed Asset USD Flexible – Global attracted €16.55bn (much of this to one PIMCO fund). Elsewhere in mixed assets, Mixed Asset EUR Flexible – Global netted €14.67bn.
At the other end of the table, weakness is concentrated in regional and sector equity exposures. Equity Europe ex UK is the worst-selling classification YTD, with redemptions of €8.89bn, followed by Equity UK (-€6.03bn), Equity UK Income (-€3.89bn), and Equity UK Small & Mid Cap (-€3.35bn) with these outflows stemming mainly from the distinctly equity-averse UK market. Equity Asia Pacific ex Japan (-€5.91bn), Equity China (-€5.36bn), Equity Sector Healthcare (-€4.82bn), Equity India (-€4.14bn), also remain in negative territory. In most cases, mutual fund redemptions have driven the weakness, with ETF flows providing only partial offsets.
Flows: Institutional v Retail
Chart 6: Asset Class Flows, Institutional v Retail, August 2026 (€bn)
Source: LSEG Lipper
August’s €114.82bn of net inflows were overwhelmingly institutional, with institutional investors accounting for €106.10bn compared with just €8.73bn from retail. That concentration is striking and suggests the month’s strong headline result was driven primarily by large-scale portfolio allocation rather than broad-based retail demand.
Equities saw the largest divergence between investor types. The asset class attracted €44.18bn overall, but institutional inflows of €55.76bn more than offset retail redemptions of €11.58bn. A similar pattern was evident in bonds, where institutional investors added €32.05bn while retail investors withdrew €18.84bn, leaving the asset class with net inflows of €13.21bn. However—there is a ‘but’—as we pointed out in August’s UK report (p10)—much of this is due to internal reallocations from retail to institutional share classes by one large asset manager.
Money market funds saw flows of €2.37bn from retail investors and €9.46bn from institutions. Mixed-assets funds also showed a more balanced profile, attracting €12.53bn, with retail inflows of €8.39bn exceeding the €4.14bn contributed by institutional investors. Alternatives were positive across both segments (+€0.66bn retail/+€1.90bn institutional), while real estate inflows of €2.41bn were almost entirely institutional (+€2.55bn), offsetting small retail redemptions.
Chart 7: Asset Class Flows, Institutional v Retail, YTD 2026 (€bn)
Source: LSEG Lipper
Despite August’s somewhat misleading skew to institutional, the YTD split suggests that retail investors have been the principal source of equity, mixed-asset, and liquidity demand. Meanwhile, institutions have played a much larger role in fixed income and alternatives. Retail investors have accounted for the larger share at €462.20bn, compared with €232.96bn from institutional investors.
Equities are the clearest example of that retail dominance. The asset class has attracted €259.06bn YTD, of which €229.46bn came from retail investors, compared with just €29.60bn from institutions. Mixed assets show a similar, if less extreme pattern, with retail flows of €75.61bn accounting for the bulk of the €95.43bn total.
Bonds, by contrast, have been decidedly institutionally driven. Of the €170.72bn gathered YTD, €106.30bn came from institutional investors, compared with €64.41bn from retail. Alternatives show the same broad skew, with institutions contributing €13.52bn of the €22.26bn total. Commodity flows were more evenly balanced, at €3.77bn retail and €3.51bn institutional.
Fund Flows by Promoter
Chart 8: Ten Best-Selling Fund Promoters in Europe, August 2026 (€bn)
Source: LSEG Lipper
The 10 best-selling fund promoters in August attracted €38.07bn, equivalent to around 33.2% of total market inflows, pointing to a relatively broad distribution of flows beyond the leading groups.
BlackRock dominated the rankings, gathering €17.79bn, driven primarily by equities (+€10.96bn), alongside strong bond (+€3.76bn) and money market (+€2.24bn) demand. Amundi ranked second with €4.35bn, with equity inflows of €4.63bn more than offsetting money market redemptions. HSBC followed at €3.83bn, supported by both money market (+€1.98bn) and equity (+€1.23bn) flows, while Goldman Sachs attracted €3.24bn, largely through equities.
The remainder of the table was more heterogeneous. Halifax’s €2.43bn was almost entirely attributable to real estate, while BNY Investments’ €1.56bn was led by money market funds. Fidelity International (+€1.26bn) and Allianz Global Investors (+€1.25bn) benefited from mixed-asset and equity demand, while Garanti’s €1.20bn was overwhelmingly money market-led. Franklin Templeton completed the top 10 at €1.16bn, with equity and mixed-assets strategies providing the bulk of inflows.
Chart 9: Ten Best-Selling Fund Promoters in Europe, Year to Date (€bn)
Source: LSEG Lipper
The 10 best-selling fund promoters YTD attracted €378.91bn, equivalent to around 54.5% of total market inflows, underlining the continued concentration of European fund flows among a relatively small group of large providers.
BlackRock retained a commanding lead at €93.35bn, driven primarily by equities (+€65.80bn) and bonds (+€27.14bn) despite modest money market redemptions. Vanguard ranked second with €56.01bn, again led by equities (+€41.68bn), while State Street Investment followed at €51.63bn, with particularly strong money market (+€33.50bn) and equity (+€21.32bn) demand offsetting bond outflows.
Amundi gathered €40.05bn, with equities contributing €31.87bn, while HSBC attracted €33.52bn across money markets, bonds, and equities. DWS followed at €31.96bn, supported by equity (+€23.73bn) and mixed-asset (+€5.20bn) flows despite money market and real estate redemptions.
JPMorgan, UBS Asset Management, PIMCO, and Northern Trust completed the top 10. Overall, equities were the principal driver across most leading promoters, while bonds and money markets provided substantial additional support for several houses.
