Investor confidence in European ETFs held firm in the first half of 2024, with inflows reaching €104 billion and total assets under management (AuM) surpassing €1.8 trillion.
According to PwC Luxembourg’s latest European ETF Listing and Distribution 2024 report, EU-domiciled ETFs grew from €1.47 trillion in December 2023 to €1.72 trillion by June 2024, achieving record-breaking growth despite global economic uncertainties.
The report highlighted a continued shift toward ETFs over traditional active funds, driving the total European ETF AuM to €1.814 trillion. Ireland and Luxembourg remain leading domiciles, accounting for 70.8% and 18.1% of cross-border ETF registrations, respectively. ESG-focused ETFs also show significant prevalence, with 36.5% of EU-domiciled ETFs disclosing under Article 8 or 9 of the EU’s Sustainable Finance Regulation Disclosure seeking to enhance sustainability-related disclosures by imposing requirements on financial market participants and financial products.
Global ETFs see record launches in 2024
Equity ETFs maintained dominance within the market, comprising 73.3% of EU-domiciled ETFs, reflecting a 3.5% year-over-year growth. In addition, cross-border ETF distribution saw strong expansion in the Asia Pacific region, led by Singapore as both the largest and fastest-growing market.
The research also indicated a 10.4% rise in European ETF cross-border registrations from June 2023 to June 2024, driven by ETF popularity. Equity ETFs remain dominant, comprising 73.3% of EU-domiciled ETFs, with a 3.5% year-over-year increase.
Christophe Saint-Mard, Global Fund Distribution Leader at PwC Luxembourg, said: “The European ETF market continues to flourish, highlighting the growing investor demand for cheap, diversified, and sustainable investment solutions.
The ongoing expansion of the European ETF market, fuelled by factors such as cross-border registrations and a broadening range of thematic and ESG offerings, positions ETFs as a cornerstone of modern investment strategies. As market conditions evolve, ETFs remain a compelling choice for investors seeking to optimise their portfolios with a cost-efficient solution.”
