Invesco’s European ETF Snapshot shows that October was another strong month for EMEA ETFs, pulling in USD39.2 billion of net new assets (NNA) – the second-highest monthly inflows on record after September.
Notably, fixed income ETFs had their best month ever, with USD16.8 billion in net inflows, the firm says.
Key takeaways include:
Record month for Fixed Income inflows
Fixed income ETFs took in USD16.8 billion, a new record for the asset class.
European corporate bonds led, followed by cash management ETFs, with US and European government bond ETFs also in demand.
Equities: US exposures return to favour
After three months of net outflows earlier this year, US equity ETFs led flows in October and have now outpaced global equity strategies three consecutive months.
Those ETFs tracking the S&P 500 dominated flows in October and YTD, despite stronger performance from the tech-focused Nasdaq 100 this year.
Thematic equity ETFs ranked second in equity flows for October and have attracted USD23.8 billion in NNA YTD – popular themes included China tech, AI and clean energy.
ESG makes a comeback
After a slow start to the year, demand for sustainable-focused ETFs has rebounded, gathering USD13.2 billion in October. This represents just over a third of all flows into UCITS ETFs.
October marked the second-best month ever for European ESG ETF inflows, reflecting improving sentiment and performance – all sub-categories of ESG that we track have seen inflows, including climate focused funds and thematic clean energy products.
Is gold still golden?
After a stellar run for gold in 2025 the yellow metal has finally had a meaningful pull back and is trading below USD4,000 / oz
Invesco notes that despite October’s price correction, factors supporting the gold story remain intact and structural demand is likely to persist.
Macro themes shaping flows
Falling rates, solid US corporate earnings, and de-dollarisation remain key market drivers.
Invesco highlights renewed investor confidence in core US equity strategies and ESG allocations as clean energy performance improves alongside renewed demand for ESG.
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