The European exchange traded fund (ETF) market has reached a definitive turning point. After 25 years of evolution moving from a niche maturation phase to a period of exponential growth.
To map the next frontier, Funds Europe, in partnership with Caceis, has launched a major research initiative focusing on the milestones that will define the next 5 to 10 years of development.
This collaborative project combines a broad industry survey with qualitative deep dives to understand how issuers, allocators, and consultants are preparing for the next era.
Mapping the next decade
The survey is meticulously designed to extract strategic intelligence from across the value chain, targeting existing ETF issuers, prospective fund managers, and institutional buy-side stakeholders. The research focuses on key areas such as:
- Future milestones and asset projections: Assessing industry views on the current pace of European ETF asset growth, and if that will persist
- The Active transformation: Uncovering if Active strategies will become the defining product story of the late 2020s, as managers wrap their alpha generating expertise into the ETF structure
- Structural innovation: Addressing new vehicle designs, such as the emergence of funds boosting access to private markets, and implications for distribution
- Expansion of asset classes: Understanding appetite for moving beyond traditional equities and fixed income into alternatives, real assets, and tokenised versions of these
holdings. - Regulation and technology: Finding out which aspects, such as SIU or AI, will drive growth in product but also influence portfolio decision making.
Strategic outlook
The project seeks to determine if the ETF is no longer viewed merely as a “low-cost tracker” but has evolved into a sophisticated technology for asset delivery.
By matching survey data with in depth interviews, Funds Europe and Caceis will provide a roadmap for issuers navigating the decision making process for their operational infrastructure.
As the industry looks ahead, the findings will clarify how market participants expect to balance the core ETF benefits of liquidity, transparency, and cost with the increasing demand for complex, high performance investment outcomes.
Eamonn O’Callaghan, group product manager, Caceis Ireland Limited, commented: ”There are some significant themes impacting ETFs, such as active strategies, adoption by retail investors and future demand of asset classes such as digital assets. It will be interesting to hear directly from investors and asset managers as to how these themes and others may impact the future direction of ETFs.”
Presentation
Following the survey data acquisition phase lasting into June, the Funds Europe team will seek out qualitative insights that reflect on the findings and provide further evidence of stakeholder expectations over the coming decade.
