Europe’s push for “Strategic Autonomy” could reshape the continent’s investment landscape, even as households keep 40% of their wealth in low‑yielding deposits and continue favouring US equities. Yet 2025 marked a turning point: Tom Bailey of HanETF called it a “historic” year for European equity ETFs, with nearly $80 billion in inflows and growing demand for more targeted, European exposures.
Asset managers have launched new strategies across EU defence, energy and infrastructure sectors, including funds from HanETF, Candriam, Lazard and Pictet Asset Management.
Retail participation remains limited, but Sabrina Khanniche of Pictet AM argues that EU initiatives like the Savings & Investment Union could redirect capital back into Europe over time. Meanwhile, Anthony Penel of Edmond de Rothschild AM highlights efforts to create pan‑European equity savings plans and notes a major rotation from US to European equities.
With vast funding needs and strong policy support, the autonomy agenda is emerging as a long‑term structural opportunity for investors.
