Deep Dive: Retail investors help close the gap between European and US ETF market

Supported by regulatory changes

Eve Maddock-Jones
clock • 4 min read

The European ETF market is on course to catch up with the US, as changes to the "fragmented" structure are being addressed.

US investors have been the long-term leaders in ETF investing, shown by the fact that in January 2024 passive assets surpassed those actively managed in the fund industry as a whole for the first time in history at 50.02% vs 49.98%, respectively, according to data from Morningstar. Emerging markets ex-China ETFs enjoy moment in the sun as investors snub China over 2023 While only 26.7% of total assets under management in Europe were attributable to passive strategies that replicate a benchmark as of the end of 2023, this has doubled compared to a year ago, when they comprised 12.3% of...

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