The European exchange-traded fund (ETF) industry has achieved a significant milestone, with assets under management (AUM) reaching a record $2.37 trillion at the end of January 2025. This represents a notable increase from the previous record of $2.29 trillion set in November 2024. The industry also witnessed substantial net inflows of $32.93 billion during January, marking the highest January inflows on record.
Key Highlights of the European ETF Market
The European ETF market continues to demonstrate robust growth and investor confidence. Key statistics from the report include:
- Record Assets: The industry's AUM grew to $2.37 trillion, fueled by strong market performance and sustained investor interest.
- Historic Inflows: Net inflows of $32.93 billion in January set a new record for the month, surpassing the previous high of $29.12 billion in January 2022.
- Sustained Growth: This marks the 28th consecutive month of net inflows, highlighting the enduring appeal of ETFs among European investors.
- Market Concentration: The top three ETF providers dominate the landscape, collectively accounting for 64.9% of the total European ETF AUM.
Leading ETF Providers in Europe
The European ETF market is characterized by a high degree of concentration among a few major players.
iShares/BlackRock maintains its dominant position with a 41.7% market share, managing $988.44 billion across 455 ETFs. **Amundi ETF** holds second place with a 12.3% share and AUM of $292.75 billion. Xtrackers rounds out the top three with a 10.9% market share and $257.51 billion in assets.
The remaining market share is distributed among 108 other providers, each holding less than 8% individually. This underscores the competitive yet concentrated nature of the industry.
Top 10 ETF Providers by Assets (January 2025)
| Provider | Number of ETFs/ETPs | Assets (USD Millions) | Market Share |
|---|---|---|---|
| iShares | 455 | 988,443 | 41.7% |
| Amundi ETF | 336 | 292,750 | 12.3% |
| Xtrackers | 264 | 257,508 | 10.9% |
| Vanguard | 34 | 171,438 | 7.2% |
| UBS ETFs | 151 | 122,979 | 5.2% |
| Invesco | 158 | 120,971 | 5.1% |
| SPDR ETFs | 106 | 107,854 | 4.5% |
| HSBC ETFs | 60 | 43,530 | 1.8% |
| JP Morgan | 48 | 37,588 | 1.6% |
| BNP Paribas Easy | 70 | 32,766 | 1.4% |
Source: ETFGI
Analyzing the Record Net Inflows
The remarkable $32.93 billion in net inflows for January was led by the industry's largest providers. iShares attracted the highest net inflows at $11.59 billion, followed by Amundi ETF with $5.39 billion and Xtrackers with $4.20 billion.
This influx of capital was supported by positive global market performance in January. Major indices like the S&P 500 rose by 2.78%, while developed markets outside the U.S. saw even stronger gains of 4.71%. European markets such as Germany and Sweden posted significant increases of 9.04% and 8.81%, respectively.
Breakdown of Inflows by ETF Type
Investor preferences were clear in January, with different ETF categories attracting varying levels of capital:
- Equity ETFs: Dominated inflows, gathering $23.60 billion. This was substantially higher than the $13.62 billion recorded in January 2024.
- Fixed Income ETFs: Reported net inflows of $4.54 billion, which was lower than the $8.14 billion from the previous year.
- Commodity ETFs: Saw a positive shift with net inflows of $2.42 billion, a significant improvement from the $859.18 million in net outflows in January 2024.
- Active ETFs: Continued their growth trajectory, attracting $1.88 billion in net inflows, up from $727.38 million a year earlier.
Top Performing ETFs and ETPs
A small group of products accounted for a large portion of the net new assets. The top 20 ETFs collectively gathered $16.86 billion.
The iShares MSCI USA ESG Screened UCITS ETF (SASU LN) led the pack with individual net inflows of $1.81 billion. Other top performers included the Vanguard S&P 500 UCITS ETF (VUSA LN) and the iShares Core S&P 500 UCITS ETF (CSSPX SW).
In the exchange-traded product (ETP) space, the top 10 products gathered $3.34 billion. The **iShares Physical Gold ETC (SGLN LN)** was the standout, attracting $1.01 billion in net inflows, reflecting continued investor interest in gold-backed products. 👉 Explore more investment strategies
The Expanding European ETF Ecosystem
The European ETF market is not only growing in size but also in complexity and diversity. As of the end of January, the industry comprised 3,127 products offered by 111 providers. These products are listed on 29 exchanges across 24 different countries, providing European investors with a vast array of choices for building diversified portfolios.
This expansive ecosystem allows investors to gain exposure to a wide range of asset classes, sectors, and geographic regions, all through the cost-effective and transparent structure of ETFs.
Frequently Asked Questions
What is an ETF?
An ETF, or exchange-traded fund, is a type of investment fund that is traded on stock exchanges, much like individual stocks. ETFs hold assets such as stocks, commodities, or bonds and generally operate with an arbitrage mechanism designed to keep them trading close to their net asset value.
Why are ETFs so popular in Europe?
ETFs have gained immense popularity due to their transparency, liquidity, lower costs compared to traditional mutual funds, and the ease with which investors can gain diversified exposure to various markets and sectors. Their traded nature allows for buying and selling throughout the trading day.
What was the main driver of the record assets in January?
The record assets were driven by a combination of strong net inflows from investors and positive performance in underlying global markets, particularly in developed equities outside the United States.
Which type of ETF attracted the most money?
Equity ETFs were the clear leader, attracting $23.60 billion in net inflows during January. This was significantly higher than the inflows into fixed income, commodity, or active ETFs.
How concentrated is the European ETF provider market?
The market is highly concentrated. The top three providers—iShares, Amundi ETF, and Xtrackers—collectively control nearly 65% of the entire European ETF market by assets.
What is the difference between an ETF and an ETP?
While all ETFs are ETPs, not all ETPs are ETFs. ETP is a broader term that encompasses exchange-traded products, including ETFs, exchange-traded notes (ETNs), and exchange-traded commodities (ETCs). ETCs and ETNs often track commodities or indices and may involve different structures and credit risks compared to ETFs.