Exchange-traded funds (ETFs) in Europe are booming. The market established a new highwater mark in 2024, with investment inflows in the region reaching US$270 billion — nearly 40 percent higher than the previous record, according to State Street’s recent report, 2025 Global ETF Outlook: The Expansion Accelerates.

Importantly, ETFs attracted inflows across all asset classes (equity, fixed income, cryptocurrency) and strategies (active, ESG, leveraged/inverse, passive, smart beta).

The French ETF market saw remarkable retail growth in 2024, supported by regulatory changes and tax-advantaged savings schemes. ETF transactions made by French retail investors during a calendar year increased by 79 percent in 2024, surpassing five million, according to the Autorité des Marchés Financiers (AMF) Active Retail Investor dashboard.¹ The number of French individuals actively trading ETFs during 2024 also grew 72 percent, rising from 296,000 in 2023 to 509,000.² And the boom looks set to continue. France is predicted to have a 110 percent increase in the number of investors holding shares in ETFs in the next 12 months.³

This dramatic expansion in retail investment is further supported by a regulatory stance that favours product evolution and increased accessibility to ETFs. In addition, the French government removed restrictions preventing the listing of active ETFs in 2024, opening the door for further product innovation.⁴

Looking more broadly across Europe, State Street’s Global ETF Outlook also explores the growth of active ETFs as one of the emerging trends shaping the European market. Inflows into active ETFs rose from US$7 billion to US$20 billion in 2024. At the same time, the number of active ETF products also increased significantly, from 103 to 178. It is striking that inflows into active ETFs were equal to 74 percent of the previous year’s total assets under management in Europe.⁵

The report predicts that this trend will persist, with more issuers and products entering the market, including standalone strategies and the expansion of unlisted funds launching a listed share class.