How active ETFs are reshaping the European investment market
8 SEPT, 2025
By Joanna Piwko from RankiaPro Europe
Janus Henderson has conducted a research among 100 professional investors – including pension funds, family offices, wealth managers, and insurance asset managers – who collectively manage over $781.5 billion in assets. The study reveals a significant shift in attitudes towards active ETFs and their role in modern investment strategies.
The research has been done across the UK, Germany, Switzerland, Italy, France, Sweden, Norway, and Finland. It highlights key insights into the ETF market.
A market on the rise
The European active ETF market has experienced explosive growth, more than doubling in size since early 2024 and surpassing US$70 billion in assets under management this summer. While active ETFs currently represent only 2.7% of the European ETF market, momentum is strong: 74% of professional investors expect this share to rise to 5% by the end of 2026.
Looking further ahead, a substantial number of investors believe the market is on track to reach US$1 trillion by 2030. Globally, the trend is even clearer: half of all ETFs launched in the first half of 2025 were active, underlining a broad industry pivot towards active investment strategies.
Core vs. high-conviction ETFs
The research highlights two distinct areas of adoption:
“Active core” ETFs: These funds, which aim for low tracking error relative to a benchmark while integrating research-driven enhancements, are driving adoption in Europe. 72% of investors surveyed view them as replacements for passive index exposures.
“High-conviction active” ETFs: Built on deep fundamental research and focused on concentrated portfolios, these products have seen slower uptake so far. However, 66% of respondents regard them as potential substitutes for traditional mutual funds, pointing to considerable growth potential.
Shifting allocations and growing confidence
Investor allocations to active ETFs are set to increase markedly. An overwhelming 96% of respondents expect to boost their allocations by 25–75% in the next 12 months, reflecting growing confidence in active management strategies. Half of professional investors anticipate that 10% of their ETF holdings will be allocated to active strategies within the year – a notable shift with important implications for market liquidity and efficiency.
Asset class exposure
The research also reveals how investors are deploying active ETFs across asset classes:
80% of respondents use active ETFs for fixed income exposure, underlining a preference for stability and income generation.
58% deploy them in equities, while 55% are exploring alternative investments through active ETFs, signalling openness to more innovative approaches.
The main innovation in ETFs is on the active side. Janus Henderson believes that a well-constructed range of active ETFs, covering both core and high-conviction strategies, can combine the benefits of active management with the efficiency and liquidity of ETFs.
