Why Asset Managers Are Rushing Into Europe’s Active ETF Market

Europe’s active ETF market continues to gather momentum in 2026. Assets, flows, and product launches all remain strong, yet the segment is still relatively small compared with the US and remains concentrated among a handful of providers. 

At the end of the first quarter of 2026, assets in Europe-domiciled active ETFs reached EUR 85.6 billion, up from EUR 52.5 billion at the end of 2024 and EUR 78.8 billion at the close of 2025. Despite this rapid growth, active ETFs still account for only around 3.1% of total European ETF assets, compared with roughly 12% in the US. 

Equity strategies dominate, representing around 70% of assets, while active bond ETFs account for roughly one-fifth. Allocation, money market, and alternative strategies remain comparatively small. Asset growth has been largely driven by flows and concentrated among a narrow group of providers. 

Flows have been a key driver of asset growth in European active ETFs, with equity strategies clearly dominating—although fixed-income flows have been growing stronger since 2025. 

In the first quarter of 2026, flows into active ETFs totaled EUR 7.4 billion. Approximately EUR 3.9 billion flowed into equity strategies, while EUR 2.7 billion went into bond strategies.  

J.P. Morgan remained the dominant force in Europe’s active ETF market. At the end of 2025, the firm held about 47% market share, which eased to roughly 44% by the end of the first quarter of 2026. This shift reflects faster growth among competitors rather than meaningful asset declines at J.P. Morgan. 

This was particularly the case of iShares, which increased its market share to 7.7% from 6.5% at the end of 2025 and overtook Pimco to become the third-largest provider of active ETFs in Europe.  

Overall market concentration remains high, with the top five providers accounting for around three-quarters of total assets, a figure that has remained broadly unchanged since the end of 2025. 

The pace of new entrants accelerated sharply in 2025. The competitive landscape became more diverse as new providers—such as Goldman Sachs, Fineco, Nordea, HSBC, and M&G—joined the established leaders. 

Many of these firms are long-standing active asset managers that historically avoided the ETF wrapper because of its association with low-cost, passive investing. Now, however, they see a clear opportunity to tap into the ETF market’s popularity, particularly its distribution advantages and investor reach, while preserving their active investment identity. 

This shift is also attracting a growing cohort of US-based managers entering the European market for the first time. 

Product activity in Europe’s active ETF market accelerated sharply over the past two years and remained strong in the first quarter of 2026. Launches surged in 2024 and 2025 to record levels, far exceeding the long-term average of roughly 10 annual launches seen earlier in the decade, while closures remained limited. 

That momentum has carried into 2026, with 36 additional launches and no closures recorded by the end of March. New launches were led by: 

• Equities: 17 launches
• Fixed income: 10 launches
• Allocation strategies: 8 launches
• Alternatives: 1 launch

Discretionary strategies continue to dominate Europe’s active ETF market, largely reflecting J.P. Morgan’s market leadership. At the end of the first quarter of 2026, assets in discretionary strategies totaled EUR 64.1 billion, or 75% of assets. J.P. Morgan manages around 99% of its active ETF assets using a discretionary approach. Fidelity, Pimco, and Vanguard also follow fully discretionary models. 

By contrast, Nordea's entire active ETF range is systematic, reflecting its equity-focused build-out. iShares and Invesco continue to favor systematic equity strategies, while retaining discretionary approaches in fixed income. Other providers show mixed profiles, reinforcing clear brand positioning differentiation across the market.  

As the market expands, investors are increasingly focused on clarity and comparability. Morningstar’s framework categorizes active ETFs along a spectrum from “discretionary” to “systematic,” offering a more nuanced view of how these funds operate. 

Using fund prospectuses and regulatory documents, Morningstar assigns each ETF a quantitative score that reflects its reliance on rules-driven models versus manager-driven judgment.  

This approach provides a transparent, repeatable, and intuitive lens for understanding how active ETFs are actually managed, not just how they are labeled.  These classifications are available through investment lists in Morningstar Direct within the Morningstar Research – EMEA folder.