Reuters LONDON (Reuters) — Assets invested in European exchange-traded funds hit a record $620 billion at the end of February, research and consultancy firm ETFGI said.
This overtook a previous record of $599 billion for European exchange-traded funds in January, and highlights the continued popularity of passive instruments over actively managed funds.
ETFs, securities which track an index or a basket of assets, saw $12.4 billion of inflows in February in Europe, marking the 30th month of straight inflows, according to ETFGI data.
The overall size of the global ETF market stands at just below $4 trillion, with the United States dominating the lion’s share of the market, according to ETFGI.
ETFs have become an attractive option for investors as they provide a cheaper investment option than traditional mutual funds, which often charge a management fee for actively selecting stocks in which to invest and have tended to underperform.