European ETF inflows hit USD41.7bn in September, a sixth month above USD40bn

European ETFs took USD41.7 billion of net new assets in September, the sixth consecutive month above USD40 billion, according to Invesco's latest European ETF Snapshot. Year-to-date inflows have already passed 2025's full-year record, the snapshot says. ETF Express reported the figures on 14 October.

Fixed income drew USD9.7 billion, 23 per cent of all September inflows. Invesco describes the month as including a global bond sell-off and the first Fed rate hike of the cycle. Government bond ETFs led that demand at USD4.3 billion, followed by cash management strategies at USD2.4 billion. With the US 10-year Treasury yield above 5.3 per cent, Invesco says higher yields mean more income to absorb further price declines and that country, maturity and issuer selection now matters more.

Equity ETFs gathered USD28.7 billion; global and All-World exposures took half of that, while core US equity ETFs drew just USD1.7 billion. European core equity funds took USD3.3 billion, a third straight month of inflows for the region, and Invesco notes Japan and emerging markets have outperformed US equities so far in 2026. Invesco attributes the core US slowdown to diversification away from an increasingly concentrated US market, and sees scope for further international allocation, particularly if the dollar weakens.