European ETF Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR (2024 - 2029) | > 8.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
European ETF Market Analysis
The Europe ETF Industry is expected to register a CAGR of greater than 8% during the forecast period(2024-2029).
International investors looking for easy exposure to European markets may want to invest in European ETFs. Having benefited from an evolving regulatory environment and lowering barriers across individual markets, additional factors are expected to drive growth over the next five years. The expansion of Robo-advice and online platforms, in particular, will likely play a key role in European retail investors' growing use of ETFs.
Structural changes in delivering advice helped expand ETF use in European markets. This momentum is further boosted by regulations such as the Retail Distribution Review (RDR), causing distribution models to shift away from commissions.
The fragmented nature of European markets directly impacts the distribution of financial products, and ETFs are no exception. Average daily volume can be surprisingly low, and bid-ask spreads can be wide. The current regulations governing cross-border distribution aim at harmonizing and simplifying the registration process. However, some significant national differences remain.
With the spreading of the Covid-19 outbreak to Europe, stock prices in European equity markets started falling, and volatility soared. After reaching their low points in late March, European equity markets rallied, albeit slower than the US.
European ETF Market Trends
Equity Funds occupied the Major percentage in ETF Market
The European ETF industry enjoyed inflows throughout December 2022. These inflows occurred in a volatile market environment. The market sentiment is driven by concerns about high inflation rates, increasing interest rates, the late effects of the market turmoil in UK government bonds, geopolitical tensions, and disrupted delivery chains caused by the COVID-19 pandemic. In conjunction with the estimated net inflows, the underlying markets' performance led to decreasing assets under management. As for the overall structure of the European ETF industry, it was not surprising that equity funds held the majority of assets, followed by bond funds.
Luxembourg is the largest share for Net assets of open-ended mutual funds in Europe
Luxembourg offers a well-established and investor-friendly regulatory environment, providing a high level of investor protection and regulatory oversight. Luxembourg is known for its expertise in facilitating cross-border distribution of funds. Fund managers often choose Luxembourg-domiciled funds to reach investors across multiple European countries. Luxembourg funds are not only popular in Europe but are also distributed globally. The country’s international reputation and the recognition of its regulatory framework contribute to the global appeal of Luxembourg-domiciled funds.
Luxembourg’s tax regime is considered favourable for fund structures. The absence of withholding tax on dividends and interest payments attracts fund managers and investors seeking tax-efficient investment solutions. Luxembourg has developed a robust fund administration ecosystem, with a wealth of service providers offering fund administration, custody, and other related services. Luxembourg hosts a wide range of open-ended mutual funds, including equity funds, bond funds, money market funds, and alternative investment funds, providing investors with diverse options. Luxembourg is a well-established global financial center, attracting financial institutions, asset managers, and investment firms. This infrastructure supports the growth and development of the fund industry.
European ETF Industry Overview
The report includes an overview of ETF operating companies across the region. The report presents detailed profiling of a few major companies, which covers product offerings, regulations governing them, their headquarters, and financial performance. Some major players dominating the market are iShares - BlackRock, Xtrackers, First Trust Europe, UBS, and JP Morgan.
European ETF Market Leaders
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iShares - BlackRock
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Xtrackers
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First Trust Europe
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UBS
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JP Morgan
*Disclaimer: Major Players sorted in no particular order
European ETF Market News
- February 2023: Vontobel launches two emerging market bond funds in response to increased investor interest. One of the two funds (Vontobel Fund - Emerging Markets Investment Grade) aims to provide clients with access to fixed income through a lower-risk version of Vontobel's existing hard currency funds. The other fund (Vontobel Fund - Asian Bond) is Asia-focused and primarily invests in corporate bonds across the region with different maturities in various hard currencies.
- February 2023: Mapfre Asset Management, owned by Spain's largest insurer Mapfre Group, increased its stake in a French mutual fund company to boost ESG capabilities and fund distribution in France. The Spanish firm acquired a further 26% equity stake in La Financière Responsable (LFR), which includes USD 706 million of assets under management (AUM), taking its total holding to 51%.
European ETF Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19 on the Market
4.6 Insights on Latest Trends and Technological Innovations in the Industry
5. MARKET SEGMENTATION
5.1 By ETF type
5.1.1 Equity ETFs
5.1.2 Fixed Income ETFs
5.1.3 Commodity ETFs
5.1.4 Alternatives ETFs
5.1.5 Money Market ETFs
5.1.6 Mixed Assets ETFs
5.1.7 Others
5.2 By Country
5.2.1 UK
5.2.2 Germany
5.2.3 France
5.2.4 Italy
5.2.5 Netherlands
5.2.6 Spain
5.2.7 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 iShares - BlackRock
6.2.2 Xtrackers
6.2.3 First Trust Europe
6.2.4 UBS
6.2.5 JP Morgan
6.2.6 Vanguard
6.2.7 Invesco
6.2.8 State Street
6.2.9 WisdomTree
6.2.10 Franklin*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
European ETF Industry Segmentation
Europe ETF is an Exchange Traded Fund (ETF) that invests in the Euro, either directly or through euro-denominated short-term debt. Euro ETFs are often established as currency or grantor trusts. Stakeholders include a claim to a specific amount of euros per share. The report covers an understanding and in-depth analysis of the market size and forecasts for the various segments of the Europe ETF industry. It includes the regulatory environment, ETF providers, and their business models, along with detailed market segmentation, product types, revenues, dividends, current market trends, changes in market dynamics, and growth opportunities.
The Europe ETF Market is segmented by ETF types (equity ETF, fixed income ETF, commodity ETF, alternative ETF, money market ETF, mixed assets ETF, and others) and country (UK, Germany, France, Italy, Netherlands, Spain, and rest of Europe). The report offers market size and forecasts for Europe ETF Market in value (USD) for all the above segments.
| By ETF type | |
| Equity ETFs | |
| Fixed Income ETFs | |
| Commodity ETFs | |
| Alternatives ETFs | |
| Money Market ETFs | |
| Mixed Assets ETFs | |
| Others |
| By Country | |
| UK | |
| Germany | |
| France | |
| Italy | |
| Netherlands | |
| Spain | |
| Rest of Europe |
European ETF Market Research FAQs
What is the current Europe ETF Market size?
The Europe ETF Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)
Who are the key players in Europe ETF Market?
iShares - BlackRock, Xtrackers, First Trust Europe, UBS and JP Morgan are the major companies operating in the Europe ETF Market.
What years does this Europe ETF Market cover?
The report covers the Europe ETF Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe ETF Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
European ETF Industry Report
Statistics for the 2024 European ETF market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. European ETF analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
