As ETFs are true cross-border products with sales registrations in multiple countries, it is not surprising that the international fund hubs in Europe (Luxembourg and Ireland) are the ETF domiciles of choice for the ETF promoters active in Europe.
In more detail, the ETF promoters in Europe use 15 countries as domiciles for their products. Ireland (€1.866.4 bn) is the largest ETF domicile by assets under management in Europe. It is followed by Luxembourg (€475.8 bn), Germany (€86.4 bn), Switzerland (€75.7 bn), France (€55.0 bn), the Netherlands (€6.9 bn), Sweden (€5.6 bn), Turkey (€4.7 bn), Finland (€0.6 bn), Denmark (€0.6 bn), Spain (€0.3 bn), Norway (€0.2 bn), Hungary (€0.1 bn), Greece (€0.1 bn), and Guernsey (€0.001 bn).
There was no change in positions for the five leading domiciles. Nevertheless, it is noteworthy that ETFs domiciled in Switzerland showed the highest growth rate for the assets under management (+52.74%) over the course of the year 2025. This growth in assets under management can mainly be attributed to the increasing prices and the respective demand for precious metals. The same is mainly true for ETFs domiciled in Turkey.
That said, the Netherlands (+139.45%) overtook Sweden as sixth largest ETF domicile in Europe, while Denmark (+380.71%) overtook Spain and Norway and became a new member of the 10 largest ETF domiciles in Europe.
Conversely, Guernsey was the only ETF domicile in Europe which faced declining assets under management over the course of 2025, as the Jacobi Bitcoin ETF, only ETF domiciled in the country, suffered from the declining price of bitcoin.
Graph 1: European ETF Domiciles by Assets Under Management, December 31, 2025 (Euro Billions)
Source: LSEG Lipper
The reason for the large variety of ETF domiciles can be seen in the effort of some ETF promoters to cater to specific investors in specific countries. To do so, they have to take local regulations—especially with regard to taxes—into account, which may force them to launch an ETF in a specific domicile. Additionally, some ETF promoters in Europe only cater to single markets and have their ETFs domiciled in these countries.
Given the fact that ETFs are real cross-border products which want to take full advantage of the UCITS passport that enables them to become registered for sales in multiple countries inside the EU, the dominance of Ireland and Luxembourg as ETF domiciles is not surprising. Especially as the local fund associations in these countries (Irish Funds and ALFI) are offering their members help for their international fund distribution efforts inside and outside of the EU. Nevertheless, the distribution of assets under management by fund domicile is another piece of evidence backing up the claim that assets under management in the European ETF industry are highly concentrated.
Additionally, one needs to bear in mind that the different interpretations of the UCITS regulation by local regulators and different taxation rules may offer competitive advantages which ETF promoters may want to exploit to run their businesses as efficiently and profitably as possible.
Graph 2: Market Shares of European ETF Domiciles by Assets Under Management, December 31, 2025
Source: LSEG Lipper
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.
