Global exchange-traded fund (“ETF”) assets reached US$24.03 trillion at the end of August 2026. That follows growth of 33.7% during 2025, when ETF assets rose from US$14.85 trillion to US$19.85 trillion (ETFGI, 2026).
For a longer view, global ETF and exchange-traded product (“ETP”) assets first passed US$5 trillion in 2018, approximately 25 years after the first US ETF launched (ETFGI, 2018). ETFs have since become an established investment vehicle for institutional and retail investors. Their transparency, liquidity, cost efficiency, and accessibility have supported adoption across markets. The question now is which investors have yet to adopt ETFs, and what would make them do so. In Europe, where individual ETF ownership still has room to grow, what could bring more households into the market?
During the industry’s earlier growth phase (1993–2015), investors gained confidence in the ETF structure. The focus was on proving its liquidity, operating model, and costs relative to traditional mutual funds. Institutional investors used ETFs for core beta exposure, liquidity management, and portfolio transitions, while advisers and retail investors also adopted them. By the end of 2015, global ETF and ETP assets had reached approximately US$3 trillion (ETFGI, 2016).
Between 2015 and 2020, ETF growth accelerated. Adoption broadened across institutional and retail markets as fees fell and digital platforms made investing easier. While the US remained the largest market, Europe and Asia also experienced growth. Since 2020, product development in active ETFs and thematic strategies has widened the choice available to investors. Retail participation is another source of potential growth, particularly in markets where individual ETF ownership is still developing.
Retail investing in Europe
Europe’s ETF market reached US$3.22 trillion in assets at the end of 2025, compared with US$13.43 trillion in the US (ETFGI, 2026). Those figures compare the size of the markets, not the proportion of retail investors in each. The opportunity for Europe lies in broadening household participation alongside continued institutional use.
The differences between the markets are partly structural. In the US, retirement arrangements and tax-advantaged accounts, such as 401(k)s and IRAs, provide established ways for households to invest. Europe has separate tax regimes and savings schemes across its national markets. That makes it harder to offer and distribute retail investment products in the same way across the region.
Europe does not have an ETF product problem. It has an investor access problem
The range of ETF products available to European investors is already extensive across asset classes, geographies, and investment styles. The greater challenge is creating more efficient pathways for households to participate in capital markets through investment accounts, retirement savings schemes, digital platforms, and financial education.
Younger investors are already contributing to ETF adoption. Among the European investors surveyed in BlackRock’s 2024 People & Money study, those aged 18–34 were more likely to hold ETFs than those over 35. Digital platforms were also an important route into ETFs for this group (ETF Express, 2024). Platforms can make the first investment easier, but continued participation depends on whether investors understand the products and find options suited to their goals.
How policy could broaden participation
European households hold substantial savings in cash. Attitudes to investment risk, pension provision, and financial knowledge all influence how people save, although these factors vary by country and household. A saver who has little experience of investing may need a straightforward account, clear information about risk, and a reason to invest regularly before considering an ETF.
Policy can help address those barriers. Investment accounts can simplify access to capital markets; financial education can help households assess their choices; and retirement arrangements can encourage long-term saving.
Savings and Investments Union and retail ETF adoption
The European Commission’s Savings and Investments Union (“SIU”) aims to give EU citizens more opportunities to invest their savings in capital markets. An estimated €10 trillion of EU household savings is held in low-yielding bank deposits (Council of the European Union, 2025). That figure shows the size of the deposit pool. It does not mean €10 trillion is available for investment or destined for ETFs.
The SIU’s effect will depend on measures that make investing practical for households, particularly investment accounts, education, tax arrangements, and distribution. ETFs could benefit because they offer diversified market exposure in an accessible, cost-efficient structure. They will, however, compete with other investment products for any savings that move out of deposits.
Germany shows what regular ETF investing can look like at scale. Its ETF savings plans, known as Sparpläne, allow people to invest set amounts over time. Approximately 14.5 million adults in Germany held ETFs in 2025 (extraETF, 2026). EY reports that the number of ETF investors in France grew by 117% in 2025 (EY, 2026). The two markets differ, but both point to growing individual interest in ETFs.
Vanguard forecasts that approximately 100 million people in Europe could use ETFs by 2035, as reported by ETF Stream (2026). That is a forecast for Europe, while the SIU applies to the EU. It illustrates the scale of adoption Vanguard considers possible.
The next phase of retail ETF growth
The ETF industry has spent more than three decades proving the strength of the ETF structure. The next phase of growth is unlikely to be driven by product innovation alone. Europe already offers investors a broad range of ETFs across asset classes, geographies, and investment styles. The greater opportunity lies in helping more households participate in capital markets through accessible investment accounts, retirement savings solutions, digital platforms, and financial education.
Success will not depend solely on launching more ETFs. It will depend on creating simpler pathways for investors to use them consistently as part of their long-term financial plans. Policymakers, distributors, and providers all have a role to play in reducing barriers to participation and building confidence among first-time investors.
If the first chapter of ETF growth was defined by institutional adoption, the next may be defined by household participation. The firms most likely to succeed will be those that focus not just on creating investment products, but on helping millions of Europeans become investors in the first place.
