Ireland currently stands as the undisputed powerhouse of the European Exchange-Traded Fund (ETF) market, according to comments heard at the recent roundtable hosted by Funds Europe in Ireland’s capital Dublin, which also identified how the ETF is become the primary engine for developing an investment culture in the country and across the region.
Accounting for some 78% of European ETF assets, and with a nod to full year figures from 2024 suggesting over 95% of all European ETF launches were Ireland domiciled, the momentum shows no signs of slowing down.
But this position stands at a pivot point, as the “ETF 3.0” trend of active ETFs takes hold – an areas where Ireland has captured some 96% European market share,
Transparency and cost
The roundtable delved into the key shift that took place in April 2025, when the Central Bank of Ireland (CBI) amended rules to allow for semi-transparent ETFs – designed to attract managers who previously feared daily public disclosure of their “secret sauce”.
However, the roundtable participants observed that take-up has been limited because many managers and investors have become increasingly comfortable with full transparency.
Cost remains a critical factor. Mark Fitzgerald of Vanguard warned that managers cannot simply port high-cost active strategies into an ETF wrapper and expect to maintain their fee structures.”The ETF providers are going to point it out and use data to do so,” he noted.
Tax
Despite Ireland’s success as a global hub, domestic retail participation is surprisingly low at – outlined as 2.2%, compared to an EU average of 7.7%. That suggests some €170 billion sits in low-yield Irish household deposits.
Taxation therefore was identified as the primary barrier to building long-term wealth in Ireland, as the discussion heard that despite the tax rate on ETF profits being recently reduced from 41% to 38%, the 8-year “deemed disposal” tax remains a major grievance. This policy requires investors to pay tax on gains every eight years regardless of whether they sell, which “eliminates the benefits of compounding,” according to Andrea Kelly of PwC.
Looking ahead: National Savings and the SIU
The roundtable highlighted several reasons for optimism:
- The Savings and Investment Union (SIU): Launched in March 2025, this EU-wide initiative aims to better connect household savings with productive investments
- National Inspiration: Participants urged Ireland to adopt models like Germany’s “kinderpots” – where the government provides monthly equity-based investments for children – or the UK’s simple ISA structure.
- A Generational Shift: Younger, tech-savvy investors are already bypassing traditional barriers to access asset classes like gold, crypto, and defence funds via ETFs
As Ireland prepares to assume the EU presidency, the consensus was clear: the tools for a vibrant investment culture are already “on the shelf”. Success now depends on simplifying the tax regime and fostering financial literacy to ensure the next generation can claim their financial agency.
