Digital solutions and rate cuts expected to fuel European ETF retail investor growth

'Significant growth area'

Retail investors are expected to be a “significant growth area” for ETFs in Europe due to the rising popularity of digital solutions, such as ETF savings plans, and the anticipation of interest rate cuts in 2024.

Data from Autorité des Marchés Financiers found that ETF retail adoption grew by 18% in France in 2023, up from 250,000 in 2022 to 296,000 last year, and Christopher Mellor, head of EMEA ETF equity product management at Invesco, argued "retail investors will be one of the main drivers of the next phase of ETF growth". Monika Calay, director of passive strategies at Morningstar, added: "The landscape of ETF retail investing is undergoing a transformative shift, with digital platforms in Europe emerging as a critical client segment." Retail investors return to markets in November but UK...