Europe’s active ETF market continued its expansion in the first quarter of 2026, nearly tripling over the past two years, according to Morningstar’s data.
Assets increased from €78.8bn at the end of 2025 to €85.6bn,, supported by €7.4bn in net inflows during the quarter. Equity strategies gained about €3.9bn, while fixed income drew €2.7bn.
Active ETFs account for 3.1% of total ETF assets in Europe, indicating “remaining headroom”, said Morningstar.
The research firm has also introduced a new classification framework, dividing active ETFs into “discretionary” and “systematic” strategies for better investor assessment.
Discretionary strategies rely on manager judgment for investment decisions, while systematic strategies follow transparent, rules-based models with minimal discretion, according to Morningstar.
Data shows a preference for systematic approaches in equities. Systematic equity active ETFs attracted around €3bn in the first quarter—more than three times the inflows into discretionary equity strategies.
Active bond ETFs gathered more than €2.5bn in inflows, with systematic strategies continuing to represent a smaller share of the market.
Global ETF inflows hit record high in Q1
JPMorgan Asset Management remains the largest player in Europe’s active ETF space, while BlackRock’s iShares has overtaken PIMCO to become the third-largest provider. Fidelity International retains second place.
36 new active ETFs were launched during the quarter and no closures were recorded by the end of March.
Natalia Wolfstetter, senior principal, manager research, Morningstar, said: “Europe’s active ETF market remains relatively small compared with the US, but it’s evolving rapidly. The dominance of discretionary strategies largely reflects the influence of market leader JPMorgan. Beneath the top tier, iShares has emerged as the third‑largest active ETF provider in Europe, overtaking Pimco. At the same time, newer entrants, particularly in the equity space, have increasingly focused on systematic strategies, which often represent the lowest‑friction entry point into active ETFs. As the market expands, these approaches have gained traction by offering index‑like exposures while still allowing scope for incremental alpha.”
