After record inflows in September, the UCITS ETF market maintained its growth trajectory in October. Over $38 billion flowed into ETFs, marking the second-best month since data tracking began. While inflows into equity ETFs remained only slightly above their 3-month average, bond ETFs saw unprecedented monthly inflows, with corporate bond products benefiting the most. “More corporate bonds, fewer equities – this suggests ETF investors are seeking slightly less risk than before, while still aiming to capture yield opportunities,” said Stefan Kuhn, Head of ETF & Index Distribution, Europe at Fidelity International.

Asian equity ETFs recorded the second-highest inflows of the year, exceeding $3 billion. “Although this regional category grows at a slower pace compared to Europe and the U.S., it is undoubtedly stabilizing,” Kuhn noted. China-focused ETFs attracted the most capital. “We’re seeing renewed investor confidence in China as a market. China remains underrepresented in many global portfolios, and there’s still significant potential—especially if the economic outlook continues to improve,” Kuhn added.