European active ETFs enjoyed one of their best ever years in 2025 as trading figures doubled from the previous 12 months.
Data compiled by financial analytics firm xyt found that trading in these funds increased by 95% with more than €450 million in daily activity.
There were also major inflows with funds gaining €23 billion in assets under management, a rise of 38%.
According to xyt, the increased activity is down to growing demand by investors for thematic products and looking at active ETFs as a way to beat the index while more asset managers are entering the active ETF market because they can charge higher fees.
The number of active ETF issuers have risen threefold since 2020 while there are eight times as many active ETF products now.
But despite the rise in activity, the ETF market is still dominated by passive funds which are valued at €2.8 trillion compared to €85 billion for passive funds. which saw €217 billion
“Active ETFs were strong performers last year, driven by investor demand and new product launches,” says Robin Mess, xyt chief executive. “Continued inflows in ETFs more broadly reinforces the importance of funds in supporting liquidity and pricing in the underlying market.”
