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

Supported by regulatory changes

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...