The European ETF industry enjoyed record high net inflows of €332.5 bn over the course of the year 2025. As witnessed in the past, these flows were highly concentrated on various levels. With regard to this, it is not surprising that the estimated net flows into the 10 best-selling Lipper classifications accounted for €225.5 bn, or 67.80%, of the overall inflows. This means the other 172 Lipper classifications accounted only for €225.5 bn, or 32.20%, of the overall estimated net inflows. With regards to this, it is noteworthy that 46 of the 182 Lipper classifications posted net outflows (-€13.5 bn overall).
In line with the overall sales trend for 2025, equity peer groups (+€197.9 bn) dominated the flows by asset type on the table of the 10 best-selling Lipper classifications by estimated net inflows. That said, it was still somewhat surprising to see only two bond classifications on the table of the 10 best-selling classifications for the year, given the general market sentiment.
With regard to the overall fund flow trend in the European ETF industry, it was not surprising that the usual suspects, Equity Global (+€73.5 bn) and Equity U.S. (+€38.4 bn), were in the top spots of the table of the 10 best-selling Lipper classifications for the year. The two leaders were followed by Equity Europe (+€38.2 bn), Equity Emerging Markets Global (+€21.3 bn), and Equity Sector Industrials (+€12.3 bn).
Generally speaking, it is not surprising that Equity Europe is in one of the top spots on the table of the 10 best-selling Lipper classifications given the overall market trend of increasing flows into ETFs investing in Europe. This trend might be driven by the fact that European ETF investors realized the comparably lower valuations of European stocks compared to those from other jurisdictions and/or the good performance of European equities compared to their U.S. peers. That said, a structural underweight in of European stocks might also be a reason why European investors increase their positions in Equity Europe.
In addition to this, it is also not surprising to see Equity Sector Industrials on the list of the 10 best-selling classifications for the year 2025, since the classification profited from the strong inflows into defense-related ETFs (+€9.8 bn) and the overall sector rotation toward classic value sectors. With regard to this, it is noteworthy that defense-related ETFs witnessed outflows in November and December (-€0.1 bn overall).
There were comparably high inflows into money market products in the European ETF industry over the course of the year 2025. Since money market products are in general not a core asset type within the European ETF industry, it is still somewhat surprising to see a money market classification (Money Market EUR +€11.4 bn) on the table of the 10 best-selling classifications in the European ETF industry. That said, Money Market USD (+€3.5 bn) was the eighteenth best-selling classification over the course of 2025.
Graph 1: Ten Best- and Worst-Lipper Global Classifications by Estimated Net Sales, January 1 – December 31, 2025 (Euro Billions)
Source: LSEG Lipper
Even as the general market environment supported equities, it was still somewhat surprising to see only bond classifications, Bond Global USD (+€9.2 bn) and Bond EUR Corporates (+€7.0 bn) on the table of the 10 best-selling Lipper classifications. That said, there were also only four bond classifications, Bond USD Government Short Term (+€5.7 bn), Bond EUR Corporates Short Term (+€3.7 bn), Bond EMU Government Short Term (+€3.4 bn), and Target Maturity Bond EUR 2020+ (+€3.0 bn), within the following 10 classifications by estimated net inflows. These comparably low inflows may indicate that European investors still prefer actively managed mutual funds, when it comes to bond investments.
Despite the fact that the Jacobi FT Wilshire Bitcoin ETF was the first ETF globally which tracks the performance of the Bitcoin, the asset class played no role in the European ETF industry, as the ETF held only €1.0 million in assets under management at the end of the year 2025.
On the other side of the table, the 10 peer groups with the highest estimated net outflows for 2025 accounted for €10.2 bn in outflows.
A closer view of the investment objectives of the classifications at the end of the table indicates that European investors of somewhat cleaned up their portfolios by selling non-core assets and buying into core asset classes. That said, Equity U.S. Small & Mid Cap (-€3.0 bn) was the classification with the highest outflows for the year. It was bettered by Bond USD Corporates (-€1.4 bn), Equity UK Small & Mid Cap (-€1.3 bn), Equity Sector Energy (-€1.0 bn), and Bond CNY (-€0.9 bn).
The views expressed are the views of the author, not necessarily those of LSEG.
This article is for information purposes only and does not constitute any investment advice.
