Preferred aspects of ETF investing by financial backers
Investors in Germany, Italy, and the UK Shifting Towards Exchange-Traded Funds (ETFs)
Exchange Traded Funds (ETFs) are gaining popularity among investors in Germany, Italy, and the United Kingdom, due to a variety of factors that include political and economic uncertainties, a shift towards European assets, and an increased appetite for fixed income and active management.
A survey conducted among 500 people aged 20 and over in these countries revealed that ETFs are among the most popular investment vehicles, with 31% of German respondents choosing them. In the United Kingdom, the picture was different, with the British naming their own country first (14%), followed by technology (12%) and the USA (10%).
Investors in these countries are reallocating capital into local European ETFs rather than U.S.-focused funds, motivated by trade and geopolitical uncertainties as well as a desire to keep investments closer to home. This regional preference boosts demand for ETFs domiciled in Europe, including Germany, Italy, and the UK.
Amid economic volatility and lower interest rates, investors seek stability and yield in fixed income ETFs, especially corporate bonds. European investors have shown strong inflows into corporate bond ETFs supported by accommodative monetary policies and easing inflation, traits relevant in these markets.
Beyond traditional passive ETFs, active ETFs are gaining traction in Europe, due to evolving regulations, institutional demand, and greater investor education. Active ETFs provide transparency, liquidity, and opportunities for outperformance (alpha), making them increasingly popular.
Preference for passive equity strategies remains strong amid uncertainty, with passive equity ETFs continuing to draw inflows in Europe, driven by broad market exposure and cost-effectiveness.
The growing ETF market and the broader product range offered by providers are increasingly catering to investors worldwide, according to Martijn Rozemuller, Europe CEO of VanEck. However, 55% of German respondents know very little or nothing about ETFs, according to the VanEck survey.
Female investors are currently underrepresented among ETF users, with only 19% of them using index funds, compared to 35% of male respondents. Female investors in Germany primarily invest in ETFs for retirement, while investors in general use ETFs for wealth accumulation.
Italian ETF investors are interested in sector ETFs related to topics like real estate or healthcare. German ETF investors show a preference for regionally focused ETFs, such as those centered around the world, Europe, or emerging markets. Even among the 45% of respondents who know about ETFs, only recently started looking into index funds.
When asked about the most interesting themes for future investments, German respondents mentioned sustainability (10%), emerging markets (10%), and technology (9%) the most. These findings align with broader European investor trends observed in 2025, suggesting that the popularity of ETFs is set to continue.
[1] Source: InvestmentEurope [2] Source: ETF Stream [3] Source: ETF Strategy [4] Source: Financial Times [5] Source: VanEck Research
Note: This article is a computer-generated summary and may not contain all the details from the original sources. Always consult the original sources for accurate and complete information.
Economic and social policy discussions in Germany, Italy, and the UK often revolve around investing and personal-finance, with an increasing focus on finance due to the growing popularity of Exchange Traded Funds (ETFs). Additionally, investing strategies, particularly those involving ETFs, are being influenced by factors such as the shift towards European assets, favoring regional funds, and increasing interest in fixed income and active management.
