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).

There are 15 million investors in Italy,¹ and the long-term picture for continued ETF growth in the country is promising. Investors are increasingly turning to low-cost ETFs in preference to mutual funds, which often come with high fees in Italy, according to analysis from ETF Stream.²  Assets under management of Italian-listed ETFs nearly quadrupled between 2014 and 2024, growing from €34 billion to €121 billion.³

Looking more broadly across Europe, State Street’s 2025 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.⁴

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.