State Street’s latest report on the exchange-traded fund (ETF) industry, 2025 Global ETF Outlook: The Expansion Accelerates, emphasises the increasing retail adoption of ETFs in Germany.

ETF retail investor numbers have grown 25 percent year-over-year from 2.8 million to 3.5 million investors.¹

A significant trend in Germany is the growing popularity of ETF savings plans (Sparpläne). The number of ETF savings plans in Germany rose by 34 percent in 2024, from 7.1 million to 9.5 million.² The advantage of these plans is that they allow individuals to invest small, regular amounts into ETFs, making them accessible to a broader retail audience. This has resulted in substantial inflows, reaching €15.6 billion annually — a figure that is projected to grow significantly, with forecasts of annual flows of €42 billion by 2028.³

Regulatory changes like MiFID and the retail investment package, which shifted from commission-based to fee-based models for retail investors, have indirectly benefited ETFs in Germany. As investors and their advisors focus on cost-effectiveness, the low-cost and diversified nature of ETFs becomes more attractive to retail investors.

Germany’s banks play an active role in driving retail adoption of ETFs. This contrasts with other European markets, where investment platforms tend to be a more dominant channel. For ETF issuers, Germany therefore necessitates a dedicated retail marketing strategy that focuses on partnerships with banks to ensure the effective distribution of their products.

The report also explores the record growth of the European ETF market, which saw inflows of over US$270 billion in 2024, marking a nearly 40-percent increase from the previous record. This growth is expected to continue, driven by the increased retail adoption referenced above, and also by the expansion of local and global managers entering the market.

The rise of actively managed ETFs in Europe is also highlighted. In 2024, Europe saw a significant increase in active ETF inflows, products and providers. This trend is expected to persist, with more issuers and products entering the market, including standalone strategies and the expansion of unlisted funds launching a listed share class.