European Exchange-Traded Funds (ETFs) break records in assets and inflows
The European Exchange-Traded Fund (ETF) industry reached an unprecedented milestone in July 2025, surpassing the previous record of $2.74 trillion set in June, and reaching an all-time high of $2.76 trillion [1]. This growth was primarily driven by strong year-to-date (YTD) growth of 21.5%, substantial net inflows concentrated in top ETFs, and robust demand for core equity and passive equity strategies amid geopolitical and trade uncertainties [2][3].
Key contributing factors include significant net inflows, investor preference for passive equity and fixed-income funds, geographic rotation and sector engagement, and sustained multi-quarter growth.
In July 2025 alone, European-domiciled ETFs saw net inflows of around $31 billion, pushing assets under management (AuM) to a record $2.8 trillion at month-end [4]. The top 20 ETFs by net new assets gathered collectively $15.19 billion in July, led by major funds like iShares Core MSCI World UCITS ETF with $2.06 billion in new inflows [2].
Passive equity ETFs attracted $60 billion in inflows in Q2 2025, while active bond funds also saw strong inflows of €50 billion (approximately $54 billion), reflecting cautious positioning amid trade and geopolitical uncertainty [1]. Core equity ETFs alone attracted $17.7 billion in July, underscoring strong demand for broad market exposure [3].
European equity funds benefited from investor rotation away from U.S.-only equities due to concerns about tariffs and trade policies, with Switzerland equity funds notably gathering €4.4 billion during Q2 2025 [1]. Alternatives, multi-asset, and commodity ETFs also saw inflows in July, diversifying demand across asset classes [3].
The European funds market has enjoyed a six-quarter streak of positive inflows, evidencing stable investor confidence and ongoing expansion in the ETF sector [1].
Equity ETFs also gathered a record $144.30 billion YTD. Equity ETFs brought in a record $23.65 billion in July. Fixed income ETFs gained $3.23 billion in July. The European ETF industry now offers 3,324 products [4].
Emerging markets posted a 1.63% increase in July and are up 13.22% year-to-date. Fixed income ETFs' YTD total was $35.92 billion. The industry gathered $31.18 billion in net inflows during July [4].
The iShares Core MSCI World UCITS ETF led individual products, pulling in $2.06 billion. The European ETF industry has 14,049 listings and is across 29 exchanges in 24 countries [4]. Active ETFs had $3.42 billion in July inflows and $16.78 billion YTD, more than double of $6.74 billion recorded in July last year [4]. Commodities ETFs had $4.89 billion in outflows over the same period in 2024. However, commodities ETFs gained $911.67 million in July and $7.96 billion YTD [4].
Globally, actively-managed ETFs reached a record $1.48tn [5]. This growth in the European ETF industry underscores the continued confidence of investors in this dynamic and evolving market.
[1] ETFGI [2] Bloomberg [3] FT [4] Refinitiv Lipper [5] Global Exchange-Traded Funds (ETFs) Market 2025 Global Analysis, Growth, Trends and Opportunities Research Report Forecasting Revenue Growth
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