Europe ETF inflows top $40 billion for seventh month: Invesco

Europe-domiciled ETFs attracted $44 billion in net new assets in October, extending a seven-month run of inflows above $40 billion, according to Invesco’s latest ETF Snapshot. Year-to-date net new assets reached $433 billion, surpassing the previous full-year record set in 2025.

Equity ETFs accounted for $28 billion of October’s inflows, including $13 billion in funds with global equity exposure. European equity ETFs continued to attract inflows, while demand for U.S. equity products slowed amid investor concerns about exposure to artificial-intelligence companies.

October’s market volatility highlighted the difference between market-cap-weighted and equal-weighted indexes. The S&P 500 fell 0.9% during the month, while the MSCI World Index declined 0.8%. Their equal-weighted counterparts gained 5% and 2%, respectively.

The 10 largest companies now represent almost 40% of the S&P 500, while the technology sector accounts for more than half of the index’s total risk. No single sector accounts for more than 20% of the risk in the equal-weighted version, according to Invesco.

Invesco’s report said October’s risk-off market conditions highlighted the concentration risk in some market-cap-weighted indexes. Equal-weight ETFs attracted $8.3 billion in net new assets during the first 10 months of the year, including $500 million in October.

Fixed-income ETFs received $15 billion in October, up from $9.1 billion in September. U.S. Treasury ETFs attracted $3.6 billion, while euro-denominated cash-management ETFs recorded $2.3 billion in inflows.

Invesco’s report examined the risk of extending maturities in search of higher yields. It found that yields on short-dated U.S. investment-grade credit would need to rise by nearly 300 basis points over 12 months before investors recorded a loss, compared with a rise of just over 35 basis points for 30-year U.S. Treasuries.

The report said short-dated government-bond ETFs could provide higher income than cash-management products while limiting exposure to interest-rate changes. It cited persistent inflation risks and the possibility of further increases in bond yields.