European active ETF assets have surged to EUR 62.4 billion, doubling in two years. However, this segment only represents 2.6% of Europe’s total ETF assets, far behind the US’s 10.2% share. JP Morgan leads with a 56% market share, while fees average 0.37% for equity active ETFs and 0.30% for fixed income.

Investors poured EUR 13.4 billion into active ETFs between January and August 2025, a significant increase from 2024. Despite promising flows, active ETFs only account for 6% of total ETF inflows in Europe, compared to 36% in the US. Launches of new active ETFs are on the rise, with 81 introduced in 2025.

Systematic strategies are gaining momentum, with 86% of active ETF assets in Europe following discretionary strategies. However, inflows into systematic active ETFs have tripled this year to EUR 3.5 billion, indicating a shift towards more model-driven approaches. Equity ETFs mostly follow shy-active rules, while high-conviction funds are starting to emerge.

Active fixed-income ETFs are venturing into new territory, with products targeting CLOs and mortgage-backed securities. Most bond ETFs rely on fundamental analysis, delivering low tracking errors to meet investors’ preferences. Early performance data shows that active fixed-income ETFs have outperformed passive peers and traditional active mutual funds.

Europe’s active ETF market is maturing rapidly, expanding into new asset classes and styles. Costs are decreasing, competition is intensifying, and innovation is accelerating. Investors have more choices but also face more complexity in understanding active ETFs’ risk and fit within their portfolios. Active ETFs in Europe are evolving, becoming a compelling corner of the investment landscape.

Read more at Morningstar: Europe’s Active ETFs: More Choice, More Complexity