Several speakers at ETF Stream’s ETF Ecosystem Unwrapped 2026, held in London on 20 and 21 May, came with the message that active ETFs are becoming a core part of issuer product pipelines, but warned that education will be critical as increasingly sophisticated strategies move beyond professional investors.

Active ETFs are moving from an institutional growth story towards a broader retail opportunity. That was one of the central themes to emerge from the event, which brought together more than 800 industry professionals to discuss product innovation, market structure, portfolio construction and the future direction of the European ETF market.

The shift is being driven by two related trends: the continued expansion of ETF ownership among European savers and the rapid growth of active strategies inside the ETF wrapper. Speakers at the event framed retail adoption as the major next step for the industry, with a particular focus on “turning savers into investors”, and tapping into the vast cash deposits held across the continent.

Vanguard expects the number of ETF holders in Europe to rise from around 30 million today to 100 million by 2035. Germany remains the most advanced retail ETF market in Europe, accounting for roughly half of current ETF ownership, but the expectation is that adoption will broaden across the continent as platforms, savings plans and digital investment channels make such investing easier for ordinary savers.

Active ETFs are increasingly expected to form part of this expansion. Around half of the ETFs in the current pipeline are active, with the proportion continuing to rise. The European active ETF market remains small in relative terms, but it is growing quickly. Morningstar data shows European active ETFs reached €78.4bn of assets at the end of 2025, up from €52.5bn a year earlier and nearly three times the level seen two years previously. The segment still represented just 2.9% of European ETF assets, but gathered €22.7bn of net inflows in 2025.

The sense from ETF Ecosystem Unwrapped was that active ETFs are no longer optional for many asset managers. One speaker from Amundi described issuers wanting “table stakes”, as they increasingly feel they need a presence in the market.

Our view

David Batchelor, senior analyst at QuotedData, said: “My overall impression from attending the highly informative ETF Ecosystem Unwrapped 2026 event is that active ETFs are moving well beyond novelty in Europe, but the retail opportunity will only be realised if the industry keeps the message clear. The ETF wrapper can make active strategies cheaper, more transparent and easier to access, but it does not make them simple by default. As more complex strategies reach retail platforms, education will become just as important as innovation. For now, this remains a relatively niche part of the overall ETF market”.