The year 2026 might become a new record year for the European ETF industry. The inflows into the ETFs in Europe over the course of the first nine months of 2026 (+€346.7 bn) are already higher than the inflows into ETFs over the full year 2025 (+€332.5 bn). Hence the inflows into ETFs in Europe have already reached a new record and are therefore on course to reach a new annual all-time high at the end of 2026.
The trend for the estimated net flows over the course of the first nine months of 2026 was somewhat surprising. This was especially true when it comes to the high inflows for January (+€48.2 bn) and February (+€48.7 bn), as both months were setting a new record for monthly inflows into ETFs in Europe and brought the inflows into ETFs to a new level. Unsurprisingly, March 2026 was the month with the lowest inflows into ETFs (+€10.5 bn) for 2026 so far. Nevertheless, the inflows for March show how resilient the fund flows into ETFs in Europe are, especially if one takes into account that mutual funds in Europe saw overall outflows for the same month. While the flows returned to a normal but still elevated level over the course of April, May, and June, they reached a new monthly record in July (+€49.3 bn) and returned again to their elevated “normal” level in August and September. When it comes to this, it is noteworthy that the old record for monthly inflows into ETFs in Europe stood at €39.6 bn (October 25).
The overall fund flow pattern shows that the estimated net inflows into ETFs in Europe may have reached a new level, since the record flows for the year so far were not driven by a single month. This may lead to the conclusion that the adoption of ETFs by all kind of investors is further increasing in Europe despite the opinion of some market observers who may see a saturation in the use of ETFs or a shift in sentiment toward actively managed mutual funds.
Graph 1: Monthly Estimated Net Sales, January 1 – September 30, 2026 (Euro Billions)
Source: LSEG Lipper
ETF Flows by Asset Type
In more detail, the inflows in the European ETF industry for the first nine months of 2026 were driven by equity ETFs (+€267.6 bn), followed by bond ETFs (+€60.4 bn), money market ETFs (+€16.0 bn), commodities ETFs (+€1.8 bn), alternatives ETFs (+€0.6 bn), and mixed-assets ETFs (+€0.3 bn). This means that no asset type saw overall outflows over the course of the year so far.
Graph 2: Estimated Net Flows by Asset Type, January 1 – September 30, 2026 (Euro Billions)
Source: LSEG Lipper
Given the general market environment, it was somewhat surprising to see that equity ETFs led the table for estimated net inflows in Europe by such a wide margin.
Compared to the overall flows into bond products in the European fund industry, low inflows into bond ETFs might be seen as a sign that European investors prefer actively managed products when it comes to their bond allocations. The reason for this might be the fact market capitalization weight indices allocate the most money to those issuers with the highest debt outstanding.
That said, given the fact that money market is not considered a core asset type in the European ETF industry, relatively high inflows into money market products might be a sign for a flight to safe havens by European investors to avoid volatility in the bond markets or possibly rising rates, as the rising inflation may put some pressure on central banks around the globe. Taking the overall market environment into consideration, the inflows into money market ETFs might also be a sign that European investors may put some money on the sideline.
ETF Flows by Management Approach
The inflows into the European ETF industry by management approach obviously follow the same pattern as the overall estimated net flows. Actively managed ETFs were able to gather €33.2 bn, or 9.55%, of the overall estimated net flows in the European ETF industry over the course of the first nine months of 2026. This means that the market share of the fund flows for actively managed ETFs is much higher than their market share of the assets under management, hence the segment of actively managed ETFs is a real growth segment.
Passive ETFs gathered €314.5 bn, or 90.45%, of the overall estimated net flows into ETFs in Europe over the course of 2026 so far. This means that passive ETFs are the product of choice for European investors, while actively managed ETFs are growing at a fast pace.
Graph 3: Monthly Estimated Net Sales by Management Approach, January 1 – September 30, 2026 (Euro Billions)
Source: LSEG Lipper
This flow pattern might be seen as a sign that the inflows into actively managed ETFs are as resilient to market turmoil as the inflows into passive ETFs. That said, since we haven’t witnessed a real market correction yet, actively managed ETFs still need to prove their resilience when it comes to fund flows in the future.
ETF Flows by Lipper Global Classifications
The net inflows of the 10 best-selling Lipper classifications for the first nine months of 2026 accounted for €246.1 bn. In line with the overall sales trend for 2026 so far, equity peer groups (+€218.1 bn) dominated the flows by asset type on the table of the 10 best-selling peer groups by estimated net inflows.
That said, it was surprising to see only two bond classifications—Bond Global USD (+€9.3 bn) and Bond EMU Government (+€6.4 bn)—on the table of the 10 best-selling classifications for the first nine months of 2026, taking the general market sentiment into account.
Given the overall fund flow trend in the European ETF industry, it was somewhat surprising that Equity Global (+€105.5 bn) was the best-selling Lipper global classification for 2026 so far by a wide margin since this spot was held by Equity U.S. for a long time. Nevertheless, Equity U.S. (+€49.8 bn), was the second best-selling Lipper classification for the year so far, followed by Equity Emerging Markets Global (+€22.5 bn), Equity Europe (+€13.4 bn), and Money Market EUR (+€12.4 bn).
More generally, the inflows into Equity Global (+€105.5 bn) and Equity Global Income (+€10.7 bn) might be seen as an indicator that European investors prefer diversified portfolios over a more concentrated exposure to single countries. That said, the inflows into Equity Emerging Markets Global (+€22.5 bn) and Equity Global ex U.S. (+€4.7 bn), may underpin this thesis.
Talking about concentrated exposures to single markets or sectors, the inflows into ETFs classified as Equity Information Technology (+€9.8 bn) show that European investors take selective (sector) risks in their portfolios. Given the fact that the sector information technology is dominated by U.S. stocks, the inflows into this sector might be seen as one reason for the relatively “low” inflows into Equity U.S.
Generally speaking, the inflows into Equity Europe (+€13.4 bn) confirmed the trend toward European equities which we have identified in 2025. That said, it looked like this trend would revert in Q2 of 2026 since Equity Europe faced outflows in each month of the quarter, but the inflows into Equity Europe returned in Q3 and kept the overall trend alive.
In addition to this, it is also not surprising to see Equity Sector Industrials on the list of the 10 best-selling classifications for 2026 so far, since the classification profited from the strong inflows into defense-related ETFs and the overall sector rotation toward classic value sectors.
The general trend of inflows into money market products continued over the course of the first nine months of 2026. Nevertheless, money market is in general not considered as a core asset type within the European ETF industry. However, taking the market environment and the overall fund flow trends into account, it was not surprising to see Money Market EUR (+€12.4 bn) on the table of the 10 best-selling classifications in the European ETF industry.
Graph 4: Ten Best- and Worst-Lipper Global Classifications by Estimated Net Sales, January 1 – September 30, 2026 (Euro Billions)
Source: LSEG Lipper
On the other side of the table, the 10 classifications with the highest estimated net outflows for 2026 so far accounted for €10.0 bn in outflows.
A more detailed view of the Lipper classifications with the highest outflows show that European investors might have reduced non-core risks over the course of the first nine months of 2026, to either reduce the overall risk in their portfolios or to build up additional risk budget for new or positions they already own.
Equity China (-€2.5 bn) was the classification with the highest outflows for the year 2026 so far. It was bettered by Equity Sector Financials (-€1.9 bn), Equity Germany Small & Mid Cap (-€1.4 bn), Commodity Precious Metals (-€1.1 bn), and Equity Finland (-€0.7 bn).
That said, the outflows from Commodity Precious Metals might be somewhat surprising given the increasing levels of government debt and rising inflation rates. Therefore, the outflows from Commodity Precious Metals might be driven by profit taking and/or the fact that the interest rates for government and other investment grade bonds have reached a level which look attractive for European investors. Especially the latter thesis might be backed by the fact that Bond Global USD (+€9.3 bn) and Bond EMU Government (+€6.4 bn) are on the table of the 10 best-selling Lipper Classifications for the year so far. In addition to this, Bond USD Government Short Term (+€4.0 bn), Bond Global Corporates USD (+€9.3 bn), Loan Participation Funds (+€2.8 bn), and Bond USD Government (+€2.7 bn) were at the upper end of the table. Conversely, some other corporate bond and high yield classifications faced (comparably) low outflows
In summary, it can be said that the overall trends for the estimated net flows in the European ETF industry over the course of the first nine months of 2026 look like business usual. A more detailed view shows that European investors may have diversified their portfolios since they reduced non-core positions while still buying into U.S. equities in general and into Equity Sector Information Technology. The flows for 2026 so far also represent the current trends in the bond markets, as investors reduce positions in high yield and some corporate bond sectors while buying into government bonds. That said, some investors are anticipating the risk of increasing interest rates by buying selectively into short term bond sectors.
This article is for information purposes only and does not constitute any investment advice.
The views expressed are the views of the author, not necessarily those of Lipper or LSEG.
