The value of assets under management (AUM) by global exchange-traded funds (ETFs) has surpassed $15 trillion, according to research from ETF issuer HANetf.
Depending on how you measure it, there are two different stories to tell about the ETF market. Data from interactive investor suggests that ETFs fell in popularity, relative to alternative products, late last year; its Top 50 Fund Index, which tracks the most-bought funds and trusts on its platform, shows a decrease in the number of ETFs in the top 50 from 19 during Q3 to 16 during Q4.
This did mean that ETFs remained the most popular product type on the investment platform, though they now share that mantle with investment trusts. “Despite a decline from 19 to 16, investors continue to favour ETFs,” wrote Kyle Caldwell, funds and investment education editor at interactive investor.
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On the other hand, HANetf’s data, based on the total asset flows across the ETF industry, tells a strong story that ETFs are continuing to grow in importance as investment products.
European ETFs hold a total of $2.2 trillion in AUM, up $95.4 billion during Q4 2024. Core equity ETFs saw $145.9 billion in flows last year, while fixed income ETFs saw net flows of $66.2 billion.
European active ETFs in particular saw strong gains, receiving $19.6 billion in inflows through 2024. That drove a 68% year-over-year increase in AUM, bringing active ETF AUM to $55.4 billion.
| Header Cell - Column 0 | Q3 Net Flows | Q4 Net Flows | Q4 vs. Q3 Flows | 2024 Net Flows | 2024 AUM Change | Total AUM |
|---|---|---|---|---|---|---|
| Global ETFs | Row 0 - Cell 1 | Row 0 - Cell 2 | Row 0 - Cell 3 | $1.63 trillion | +29.90% | $15.12 trillion |
| Europe ETPs | $69.33 billion | $93.29 billion | +34.56% | $271.88 billion | +25.74% | $2.29 trillion |
| Europe ETFs | $68.54 billion | $95.38 billion | +39.16% | $278.93 billion | +25.92% | $2.18 trillion |
| Europe Core Equity ETFs | $28.59 billion | $54.43 billion | +86.93% | $145.86 billion | +37.20% | $976.22 billion |
| Europe Fixed Income ETFs | $23.93 billion | $12.00 billion | -49.89% | $66.16 billion | +14.36% | $508.00 billion |
| Europe ETCs | $0.61 billion | -$1.80 billion | -395.08% | -$7.03 billion | +21.86% | $106.38 billion |
| Europe Active ETFs | $5.83 billion | $7.70 billion | +32.08% | $19.45 billion | +68.22% | $55.43 billion |
| Europe Crypto ETPs | $0.43 billion | $0.17 billion | -60.47% | $0.31 billion | +101.25% | $17.65 billion |
Source: HANetf. All European AUM data sourced from ETFBook as of 31.12.2024. Global AUM data sourced from ETFGI as of 30.11.2024. No. brands calculated using ETFGI and HANetf data
Interactive investor’s findings also support the increased popularity of active funds, with one more active fund making the top 50 during Q4 than in the previous quarter.
AUM in exchange-traded commodities (ETCs – effectively ETFs that track the price of specific commodities, such as gold) increased 21% during 2024 despite net outflows. That is, investors made net withdrawals from these funds, but the increase in value of their underlying securities (particularly gold and Bitcoin) outweighed these outflows.
Which are more popular – active or passive ETFs?
European active ETFs in particular were popular among investors, receiving $19.6 billion in inflows through 2024. That drove a 68% year-over-year increase in AUM, bringing active ETF AUM to $55.4 billion.
HANetf cited an independent survey of wealth managers across Europe in Q1 2025, that showed 94% of wealth managers across Europe expect to increase their use of active ETFs in the next 12 months.
This growth in active ETFs isn’t at the expense of their passive counterparts. Tom Bailey, head of ETF research at HANetf, tells MoneyWeek that “instead, the growth of active ETFs is coming at the expense of actively managed mutual funds".
“Investors are increasingly coming around to the idea that ETFs are a superior investment vehicle, whether it be for passive or active strategies,” he adds.
Why might investors favour ETFs over mutual funds?
According to HANetf’s survey, 68% of European wealth managers would switch to an ETF version of a mutual fund they currently invest in if one was available.
The reason for this, according to Bailey, is the increased liquidity and transparency that comes with the way ETFs are traded.
“There aren’t many products where customers are expected to agree to buy without knowing the exact price at the time of purchase,” says Bailey. “However, this is common with mutual funds. When you place an order for a mutual fund on a platform, you typically receive the end-of-day price for the units in the fund, rather than the price at the moment you submit your order.
“In contrast, ETFs are traded live on a stock exchange. This means that when you buy an ETF through your platform, you transact at the current market price, providing greater transparency and immediacy.”
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