European fund managers expanding into active ETFs face a question over how much business will come from new investors and how much will migrate from their existing funds.
MSCI’s ETF Intelligence Survey 2026, published on 14 September, found that 58% of respondents said an active ETF allocation from a manager they already use would most likely replace an existing mutual fund or UCITS holding.
The survey covered 450 advisers across the US and Europe. Its headline findings combine both regions and should not be read as European figures alone.
Some 71% expected to increase their use of active ETFs over the next two years. Half were likely to switch to an active ETF version of a strategy they already owned, while 85% of respondents involved in fund selection were open to an ETF share class of the same strategy.
Price sensitivity varied by exposure: 58% would pay more for a strategy that was difficult to access, compared with just 12% willing to pay a premium for core market exposure.
Our view
David Batchelor, senior analyst at QuotedData, said: “For European asset managers, success in ETFs may require accepting that some existing business will move across. Retaining a client in a lower-fee product could still be preferable to losing that client to a competitor. However, rising ETF assets alone will not establish that a manager is attracting new money overall.
Investors should make a different calculation. Moving an established strategy into an ETF does not improve the underlying investment process. The relevant comparison is the total cost of ownership, including platform charges and dealing spreads, alongside any differences in portfolio construction.
The survey measures intentions, rather than completed switches. It nevertheless gives managers a useful question to answer as their ranges expand: are they reaching new investors, or changing how existing clients hold their funds?”
