European ETF Industry Evolution

ETFs have seen strong growth and, in Europe, total assets now exceed $1.5 trillion. In this paper we look at the trends across asset classes from the past 10 years and what the industry could see going forward.

ETFs have been available in Europe since 2000, however it is only since the Global Financial Crisis that ETFs have really seen a boom in their asset growth. Over this period, ETFs in Europe have seen a Compounded Annual Growth Rate (CAGR) of more than 16%, starting 2010 with just $228 billion of assets, and entering the new decade with just over $1 trillion in total assets.

By the end of 2022, ETFs have swelled to even loftier heights, buoyed by massive inflows that year and surging markets following the dip triggered by the coronavirus pandemic crisis. European ETF assets achieved a level of just over $1.5Tn, adding half a trillion in the previous year alone. In July 2023, Europe-domiciled ETFs achieved an all-time high level of assets under management, that is over $1.65Tn.