LONDON - The London Stock Exchange's exchange-traded funds (ETFs) sector has experienced significant growth, with assets under management (AUM) reaching a remarkable £987 billion ($1 = £0.79) by the end of December. The surge in AUM was primarily driven by strong inflows into U.S. equity-focused products, which alone attracted nearly £4 billion.
Equity funds have been a major contributor to this growth, alongside bond funds which also played a role in the increase of assets. Active fund strategies have seen substantial interest, with inflows exceeding half a billion pounds (£544 million). The trend towards sustainable investing remains robust, with environmental, social, and governance (ESG) themed investments drawing in billions. Equity-based sustainable funds have been particularly successful, securing nearly £3 billion in inflows.
Among fund providers, BlackRock (NYSE:BLK) has established a clear lead by securing almost £4 billion in new inflows, significantly outperforming its peers such as DWS and Vanguard. This indicates a strong investor preference for the offerings of BlackRock in the ETF space. The growth in the ETF sector of the London Stock Exchange highlights the increasing investor appetite for diversified and thematic investment vehicles, particularly those with a focus on U.S. equities and ESG principles.
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