Retail ETF trading on UK exchanges has almost tripled in 2026, according to new research from market data specialist xyt, highlighting the growing importance of individual investors to Europe’s exchange-traded fund industry.
The average daily value of ETFs traded through UK retail channels increased from €105m in the first nine months of 2025 to €296m over the same period this year, a rise of 182%. Almost all this activity took place through the London Stock Exchange’s Retail Service Provider (RSP) system, which facilitates trading by individual investors. The UK’s share of European retail ETF trading increased from 9% to 16%.
Across Europe, retail ETF trading grew by 55.9% on a like-for-like basis, comfortably outpacing the 31% increase in the rest of the market. Retail investors accounted for 8.9% of the total value of ETFs traded, up from 7.2% a year earlier, with average daily trading reaching €1.84bn.
Germany remains Europe’s largest retail ETF market, accounting for approximately 75% of activity, with average daily trading of €1.39bn. However, the faster growth in the UK and other European markets suggests that retail participation is becoming more widespread.
The findings come as European exchanges look to accommodate changing investor behaviour. The London Stock Exchange plans to introduce near-continuous weekday trading through its new LSE 24 venue, with exchange-traded products expected to become available in the first half of 2027, subject to regulatory approval.
Our view
David Batchelor, senior analyst at QuotedData, said: “The near-tripling of UK retail ETF trading is particularly striking, even allowing for its relatively small starting point compared with Germany. ETFs have traditionally been dominated by institutional investors in Europe, but the rapid growth of investment platforms and low-cost dealing services is changing that balance. However, it is worth distinguishing trading activity from investment inflows – higher turnover does not necessarily mean that investors are putting proportionately more money into ETFs”.
