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 3.4% of total European ETF assets, compared with roughly 12% in the US. 

Equity strategies dominate, representing 71% of assets, while active bond ETFs account for 22%. 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. 

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 42% by the end of the second 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 8.2% from 6.5% at the end of 2025. Meanwhile, Invesco overtook Pimco to become the fourth-largest provider, and BNP Paribas dropped out of the top 10.  

Overall market concentration remains high, with the top five providers accounting for 71% of total assets, a figure that has remained broadly unchanged since the end of 2025. 

The competitive landscape is becoming more diverse as new providers—including Pictet, Carne Global Fund Managers, and AllianceBernstein so far in 2026—join established leaders like J.P. Morgan, Fidelity, iShares, and Pimco.  

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 half of 2026, with a total of 75 new products hitting the shelves. New launches were led by: 

• Equities: 38 launches
• Fixed income: 22 launches
• Allocation strategies: 9 launches
• Alternatives: 6 launches

Discretionary strategies continue to dominate Europe’s active ETF market, largely reflecting J.P. Morgan’s market leadership. At the end of the second quarter of 2026, assets in discretionary strategies totaled EUR 78.5 billion, or 72% 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 new investment lists in Morningstar Direct, located within the Investment Lists section of the Morningstar Research—EMEA folder.