Despite global uncertainties, investor confidence in European ETFs remained strong in H1 2024, with inflows reaching EUR 104.0 bn and assets under management (AuM) surpassing EUR 1.8 trillion. In particular, EU-domiciled ETFs surged from EUR 1.47tn to EUR 1.72tn between December 2023 and June 2024, reaching record-breaking growth.
Published today, PwC Luxembourg's latest European ETF Listing and Distribution 2024 poster offers a comprehensive global view of the fund distribution landscape, highlighting key trends, regional developments, and the evolution of cross-listing strategies.
The key data points from the poster include:
- ETFs gain popularity over more traditional, active funds: The EU ETF market continues to grow, pushing total AuM to a new high of EUR 1,814.2 bn and driving record inflows of EUR 104.0 bn.
- Leading European domiciles: Ireland and Luxembourg were still the most popular ETFs domiciles in Europe, accounting for respectively 70.8% and 18.1% of cross-border registrations.
- Growth of the industry and ESG prevalence: The ETF market grew by 10.4% between June 2023 and June 2024. Of the EU-domiciled ETFs, 36.5% are ESG ETFs, disclosing as per Article 8 or Article 9 of the SFDR.
- Asset class split: Equity ETFs continue to exhibit robust growth, increasing their share of the European ETF market to 73.3% by June 2024. With EUR 1.3tn in AuM), they represent a 3.5% year-over-year increase.
- Growth region: The Asia Pacific region experienced a large increase in terms of cross-border distribution from June 2023 to June 2024, with an increase of 17%.
- Singapore was both the top ETF market and the fastest growing market in the region.
The research reveals the European ETF market experienced an increase of 10.4% in cross-border registrations between June 2023 and June 2024, driven by the ongoing popularity of ETFs, displaying substantial growth over the past year. Meanwhile, Equity ETFs remain the dominant asset class within the EU ETF market, accounting for a substantial 73.3% of all EU-domiciled ETFs and representing 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.”
European ETF Listing and Distribution
November 2024
Notes to editors
1. PwC Luxembourg (www.pwc.lu) is the largest professional services firm in Luxembourg with over 3,800 people employed from 90 different countries. PwC Luxembourg provides audit, tax and advisory services including management consulting, transaction, financing and regulatory advice. The firm provides advice to a wide variety of clients from local and middle market entrepreneurs to large multinational companies operating from Luxembourg and the Greater Region. The firm helps its clients create the value they are looking for by contributing to the smooth operation of the capital markets and providing advice through an industry-focused approach.
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