Amundi: European UCITS ETF market hit record highs in 2025
9 JAN, 2026
By Joanna Piwko from RankiaPro Europe
The European UCITS ETF market closed 2025 with a record-breaking €330.6 billion in net inflows, pushing total assets under management to €2.57 trillion. The year was characterised by a major shift in asset allocation, with investors moving away from a US-centric approach and increasing exposure to European equities, global diversification strategies, and shorter-duration fixed income products.
Equities dominate flows
Equities accounted for nearly three-quarters of total ETF inflows, attracting €249.3 billion in net new assets during the year, a 15.9% increase compared with 2024. European equity ETFs stood out as the main beneficiary of this rotation, gathering €65.8 billion, their strongest year on record.
This renewed interest in Europe was driven by growing political and economic momentum toward greater strategic autonomy, including increased defence and infrastructure spending. Investors adopted a more granular approach, favouring sector-specific exposures. European sector ETFs attracted over €35.5 billion, led by industrials (€13.3bn), information technology (€8.9bn), and financials (€7.3bn). Defence-focused strategies alone gathered almost €10 billion, far exceeding inflows into robotics and artificial intelligence themes.
Global diversification outpaces the U.S.
While US equity ETFs saw a recovery in flows from May onwards following a sharp market sell-off in April, total inflows of €37.2 billion lagged behind broader global strategies. World equity ETFs attracted €63.3 billion, All-Country World Index (ACWI) strategies €42.7 billion, and emerging market ETFs €33.3 billion over the year.
Within emerging markets, investors increasingly favoured targeted exposures. Roughly one-third of EM inflows went into specific regional or country strategies, with notable allocations to China (€6.6bn) – particularly technology indices – as well as EM Asia and India.
Fixed Income – shorter duration becomes the priority
Fixed income ETFs gathered €77.8 billion in 2025, marking 16.6% year-on-year growth, as investors focused on managing duration risk amid an uncertain interest rate environment. Government bonds (€27.6bn) and investment-grade corporate credit (€24.2bn) accounted for the bulk of inflows.
Euro corporate bond ETFs were the single largest fixed income sub-asset class, attracting €18.5 billion, their strongest year ever. A clear preference emerged for shorter-term maturities, with over 40% of inflows directed toward 1–5 year exposures and around a quarter into ultra-short-term strategies. Similar patterns were observed in US corporate bonds and government debt, where short-term and ultra-short-term ETFs dominated allocations.
ESG, defensive strategies and gold support portfolio diversification
Despite ongoing performance scrutiny, ESG equity ETFs attracted €31.6 billion, mainly into low tracking-error strategies. In fixed income, ESG products played an even larger role, gathering €18.2 billion and accounting for a significant share of overall asset class inflows.
In a year marked by heightened market uncertainty, investors also allocated €11.6 billion to defensive income equity strategies focused on high-dividend companies, seeking stability and resilience.
Commodities added another layer of diversification, with gold reaching a record high of $4,533 per ounce during the year. Gold ETCs attracted €5.6 billion in net inflows as both central banks and private investors increased exposure amid political uncertainty and inflation concerns.
Outlook
The 2025 ETF flow data highlights a decisive shift toward regional diversification, sector precision, and risk-aware fixed income positioning. With Europe firmly back on investors’ radar and duration management remaining a key theme, these trends are likely to continue shaping ETF allocation strategies in the year ahead.
