Active funds vs ETFs: Did Eurozone equity funds benefit from the market recovery in March 2022?
Did investors favour active management or ETFs on Eurozone equities in March 2022? How have active funds vs. ETFs performed in this segment? What impact for portfolio construction?
Marlène Hassine Konqui
Portfolio construction expert member of the SFAF ETF commission Associate
Director General BSD Investing
Analysis
Massive outflows from Eurozone equity funds
In March 2022, against a backdrop of a rebound in the equity market, Eurozone equity funds experienced massive outflows. Unlike the previous 2 months, these outflows affect both active and passive funds. However, since the beginning of the year, the outflows of passive funds remain half those of active funds: respectively -2.4 billion euros against -4.7 billion euros (Sources: BSD investing, Morningstar 31/3/22).
Eurozone large-cap equity funds were the most impacted by outflows
Large-cap equity funds were the most impacted by these outflows. €3.2 billion in outflows from passive funds and €2.8 billion from active funds. The mid-cap equity segment also saw outflows of €300 million from active funds and €500 million from passive funds. Conversely, flows to small-cap stocks have been much more stable across both active and passive funds.
Improved performance of Eurozone equity active funds vs. ETFs since the beginning of 2022
Since the beginning of 2022, in a volatile context, the performance of active managers in Eurozone equities has been on the rise: 48% manage to outperform their passive counterparts. This is the second-highest level, observed over the first three months of the year, for 5 years. Active managers benefited until February 2022 from an overexposure to….
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VIDEO
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Discover BSD Investing method to select active funds and ETFs to enhance portfolio performance by Marlene Hassine Konqui expert in portfolio construction, active vs passive fund allocation. Click here to view the video
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Discover BSD Investing latest active fund vs ETF 2021 performance report in the webinar hold December 21, 2021. Click here to view the video.
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