The European ETF industry enjoyed strong inflows over the course of September. Nevertheless, September 2026 marked a challenging month for global financial markets as investors confronted a combination of renewed geopolitical tensions, rising energy prices, persistent inflation pressures, and a more hawkish stance from major central banks. Equity markets delivered mixed performances across regions, while government bond markets experienced renewed volatility as expectations for interest rates shifted higher. Investor sentiment remained cautious but not outright bearish, reflecting continued economic resilience across major economies despite mounting risks.
The dominant geopolitical development was the escalation of tensions in the Middle East, which drove a sharp increase in oil and natural gas prices. Policymakers at the European Central Bank (ECB) noted that the conflict had materially altered the inflation outlook, with higher energy costs feeding into expectations for consumer prices across developed economies. Markets increasingly feared that what initially appeared to be a temporary commodity shock could evolve into a more prolonged inflationary episode.
These developments arrived at a time when governments across Europe, North America, and Asia were maintaining elevated fiscal spending. Defense expenditures, industrial-policy initiatives, and infrastructure investments continued to support economic activity, helping offset weakening global trade. While fiscal expansion supported corporate earnings and employment, investors also worried that continued government spending could complicate efforts by central banks to return inflation to target.
The most significant monetary policy event came from the Federal Reserve. At its September meeting, the Fed raised interest rates by 25 basis points (bps), citing resilient economic growth, strong productivity gains, and inflation that remained above its long-term objective. The decision surprised investors who had expected the central bank to remain on hold, triggering a sharp repricing across bond markets.
As a result, U.S. Treasury yields climbed significantly during the month, with long-dated yields approaching cycle highs. Equity investors responded by reducing exposure to interest rate-sensitive sectors while maintaining positions in companies benefiting from artificial intelligence investment and strong earnings growth. Although major indices retreated modestly, market sentiment remained relatively constructive because recession concerns stayed limited.
In Europe, the ECB also tightened policy, as policymakers increased key interest rates by 25 bps after concluding that higher energy prices threatened to keep inflation above target for longer. The Governing Council acknowledged that economic growth remained moderate but judged inflation risks being the greater challenge. European government bond yields rose in response, while investors revised expectations for future monetary easing.
European equities proved relatively resilient despite higher borrowing costs. Investors were encouraged by ongoing fiscal support, defense spending, and improving corporate earnings. Financial stocks benefited from higher rates, while industrial companies continued to gain support from infrastructure and energy-transition investment programs. Market participation broadened beyond technology, helping European indices outperform many global peers.
Meanwhile, the Bank of Japan continued its gradual policy normalization process. Japanese equities remained among the strongest performers in developed markets, supported by corporate reforms, healthy earnings, and sustained domestic investment.
By the end of September, investor sentiment had become increasingly selective. Markets no longer expected a rapid return to lower interest rates, and both equity and bond investors focused on sectors and regions capable of navigating a higher-for-longer rate environment. The combination of geopolitical uncertainty, supportive fiscal policy, and renewed central bank tightening ultimately defined market performance throughout the month, reinforcing the view that inflation remained the principal challenge facing global investors.
From a European ETF industry perspective, the performance of the underlying markets led, in combination with the estimated net flows, to increasing assets under management (from €3,215.6 bn as of August 31, 2026, to €3,249.3 bn at the end of September). At a closer look, the increase in assets under management of €33.7 bn for September was driven by estimated net inflows (+€34.2 bn), while the on average negative performance of the underlying markets deducted €0.5 bn) from the assets under management.
Assets Under Management in the European ETF Industry
September 2026 marked another record-breaking month for the European ETF industry, as the assets under management held in ETFs in Europe reached €3,249.3 bn at the end of the month.
As for the overall structure of the European ETF industry, it was not surprising equity ETFs (€2,560.0 bn) held the majority of assets, followed by bond ETFs (€550.4 bn), commodities ETFs (€62.9 bn), money market ETFs (€59.4 bn), alternatives ETFs (€11.1 bn), and mixed-assets ETFs (€5.4 bn).
Graph 1: Market Share, Assets Under Management in the European ETF Segment by Asset Type, September 30, 2026
Source: LSEG Lipper
Given the on average negative market environment over the course of the month, it is somewhat surprising that the overall assets under management (AUM) in the European ETF industry as well as the AUM for alternatives, bond, and equity ETFs have reached new month end all-time highs at the end of September 2026.
ETF Flows by Asset Type
The inflows into the European ETF industry over the course of September (+€34.2 bn) proved that the trend of elevated inflows into ETFs in 2026 compared to previous years is further intact. That said, the inflows into ETFs for September were the second lowest monthly inflows for 2026 so far. This is also shown when comparing the inflows for September with the rolling 12-month average, as the estimated net inflows for September are below the rolling 12-month average flows (+€34.2 bn). Nevertheless, these inflows for September show that European ETF investors were further in risk-on mode over the course of the month.
In addition to this, it is noteworthy that the general fund flow trend for the year is set to reach a new all-time high on an annual basis at the end of the year. In fact, the cumulative estimated net inflows for the first nine months of 2026 (+€346.7 bn) have already surpassed the overall inflows for the year 2025 (+€332.5 bn). This shows that the popularity of ETFs among European investors is still growing despite the already generally higher inflows over the course of the years 2024 and 2025.
The inflows in the European ETF industry for September were driven by equity ETFs (+€25.5 bn), followed by bond ETFs (+€7.3 bn), money market ETFs (+€1.1 bn), alternatives ETFs (+€0.3 bn), and commodities ETFs (+€0.1 bn). On the other side of the table, mixed-assets ETFs (-€0.1 bn) were the only asset type facing outflows over the course of the month.
Graph 2: Estimated Net Sales by Asset Type, September 1 – September 30, 2026 (Euro Billions)
Source: LSEG Lipper
With regard to the volatile market environment, it was not surprising to see that the estimated net inflows into ETFs were led by equity ETFs over the course of the month. Conversely, the relatively strong inflows into bond ETFs were surprising given the tough market environment for bonds, as interest rates were increasing over the course of the month. When it comes to this, the combination of inflows into bond and equity ETFs in this market environment might be seen as a sign that European investors are further in risk-on mode.
Assets Under Management by Lipper Global Classifications
In order to examine the European ETF markets in further detail, a review of the Lipper global classifications will lead to more insights on the structure and concentration of assets within the European ETF industry. At the end of September, the European ETF market was split into 194 different peer groups. The highest assets under management at the end of September were held by ETFs classified as Equity U.S. (€771.6 bn), followed by Equity Global (€668.9 bn), Equity Europe (€251.0 bn), Equity Emerging Markets Global (€185.0 bn), and Equity Sector Information Technology (€92.5 bn). These five peer groups accounted for €1,969.0 bn, or 60.60%, of the overall assets under management in the European ETF segment, while the 10-top classifications by assets under management accounted for €2,246.0 bn, or 69.12%.
Overall, 16 of the 194 Lipper classifications each accounted for more than 1% of assets under management. In total, these 16 classifications accounted for €2,480.4 bn, or 76.33%, of the overall assets under management (Please read the article: Review of the Market Concentration of Assets Under Management in the European ETF Industry at the Classification Level for information on this topic).
Graph 3: Ten Largest Lipper Global Classifications by Assets Under Management, September 30, 2026 (Euro Billions)
Source: LSEG Lipper
More generally, the rankings of the largest classifications saw some movement in single positions over the last few years. As the positions of the classifications had been quite stable in the past, this indicates that European investors use ETFs to trade according to their market views. Even as some of these positions might be core holdings, once investors got into risk-off mode they also reduced their exposure to core asset classes.
Despite the fact that the rankings at the top of the league table show some changes from time to time, these numbers show that the assets under management by Lipper global classifications continued to be highly concentrated in the European ETF industry.
The classifications on the other side of the table showed some funds in the European ETF market are quite low in assets and their constituents may face the risk of being closed in the near future. They are obviously lacking investor interest and might, therefore, not be profitable for their respective fund promoters (Please read our report: “Will the ETFs in the Smallest Lipper Classifications in the European ETF Industry Survive?” for more details on this topic).
Graph 4: Ten Smallest Lipper Global Classifications by Assets Under Management, September 30, 2026 (Euro Billions)
Source: LSEG Lipper
ETF Flows by Lipper Global Classifications
The net inflows of the 10 best-selling Lipper classifications accounted for €27.8 bn. In line with the overall sales trend for September, equity peer groups (+€24.8 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 on the table of the 10 best-selling classifications for the month.
Given the overall fund flow trend in the European ETF industry, it was not surprising that Equity Global (+€14.0 bn) was the best-selling Lipper global classification for September. It was followed by Equity U.S. (+€4.0 bn), Equity Europe (+€2.0 bn), Equity Emerging Markets Global (+€1.4 bn), and Equity Global Income (+€1.2 bn).
Generally speaking, the fact that Equity Europe is on the table of the 10 best-selling Lipper classifications underpins that the negative trend for European equities has been reversed, as September marks the third consecutive month with inflows into Equity Europe after three consecutive months with outflows.
Graph 5: Ten Best- and Worst-Lipper Global Classifications by Estimated Net Sales, September 1 – September 30, 2026 (Euro Billions)
Source: LSEG Lipper
More generally, these numbers showed the European ETF segment is also highly concentrated when it comes to fund flows by Lipper classification. Generally speaking, one would expect the flows into ETFs to be concentrated since investors often use ETFs to implement their market views and short-term asset allocation decisions. These products are made and, therefore, are easy to use for these purposes.
On the other side of the table, the 10 classifications with the highest estimated net outflows for September accounted for €5.2 bn in outflows, which was way above the outflows for August (-€2.0 bn).
Equity Sector Financials (-€1.1 bn) was the classification with the highest outflows for the month. It was bettered by Equity U.S. Small- and Mid-Cap (-€1.0 bn), Equity Finland (-€0.8 bn), Bond EUR High Yield (-€0.6 bn), and Equity China (-€0.5 bn).
Assets Under Management by Promoters
A closer look at assets under management by promoters in the European ETF industry also showed high concentration, with only 39 of the 127 ETF promoters in Europe holding assets at or above €1.0 bn, accounting for €3,236.3 bn. It is noteworthy that Lipper has readjusted its definition of an ETF promoter. As a result, the number of ETF promoters in Europe went up sharply in April 2026 (78), as we now also list ETF promoters which are using white label platforms for their products as stand-alone promoters. The largest ETF promoter in Europe—iShares (€1,309.1 bn)—accounted for 40.73% of the overall assets under management. This number is far ahead of the number-two promoter—Amundi ETF (€420.2 bn)—and the number-three promoter—Xtrackers (€336.4 bn). (To learn more about the concentration of the European ETF market at the promoter level, please read our report: Review of the concentration of the assets under management in the European ETF industry on promoter level).
Graph 6: The 10 Largest ETF Promoters by Assets Under Management, September 30, 2026 (Euro Billions)
Source: LSEG Lipper
The 10-top promoters accounted for €2,993.8 bn, or 92.05%, of the overall assets under management in the European ETF industry. This meant, in turn, the other 117 ETF promoters registering at least one ETF for sale in Europe accounted for only 7.95% of the overall assets under management.
ETF Flows by Promoters
Since the European ETF market is highly concentrated when it comes to assets under management by promoter, it was not surprising that nine of the 10 largest promoters by assets under management were among the 10-top selling ETF promoters for the month. iShares was the best-selling ETF promoter in Europe for September (+€10.1 bn), ahead of Vanguard (+€6.2 bn) and Amundi ETF (+€6.1 bn).
Graph 7: Ten Best-Selling ETF Promoters, September 1 – September 30, 2026 (Euro Billions)
Source: LSEG Lipper
The flows of the 10-top promoters accounted for estimated net inflows of €31.2 bn. As for the overall flow trend for September, it was clear that some of the 127 promoters (21) faced estimated net outflows (-€1.2 bn in total) over the course of the month.
Assets Under Management by ETFs
There were 5,157 instruments (primary share classes [2,663] and convenience share classes [2,494]) listed as ETFs in the Lipper database at the end of September. Regarding the overall market pattern, it was not surprising assets under management at the ETF level were also highly concentrated. Only 568 of the 2,663 ETFs (primary share classes = portfolios = ETFs) held assets above €1.0 bn each. These ETFs accounted for €2,818.6 bn, or 86.74%, of the overall assets in the European ETF industry. Only 46 ETFs accounted for more than €10.0 bn in assets under management at the end of September. These 46 ETFs accounted for €1,223.4 bn in assets under management. This means 1.73% of the ETFs accounted for 37.65% of the overall assets under management.
The 10 largest ETFs in Europe accounted for €649.2 bn, or 19.98%, of the overall assets under management.
Graph 8: The 10 Largest ETFs by Assets Under Management, September 30, 2026 (Euro Billions)
Source: LSEG Lipper
These numbers show that only a small number of ETFs have been able to gather a significant amount of assets under management so far, since only 21.33% of the available ETFs holding more than €1.0 bn in AUM, while only 1.73% of all available ETFs are holding more than €10.0 bn in assets under management.
Estimated Net Flows at the ETF Level
A total of 1,329 of the 2,663 ETFs (primary share classes = portfolios = ETFs) analyzed in this report showed net inflows of more than €10,000 each for September, accounting for inflows of €56.6 bn. This meant the other 1,334 instruments faced no flows, or net outflows, for the month. Upon closer inspection, only 141 of the 1,329 ETFs posting net inflows enjoyed inflows of more than €100 m over the course of September—for a total of €37.0 bn. The best-selling ETF for September was again Vanguard FTSE All-World UCITS ETF, which enjoyed estimated net inflows of €2.7 bn. It was followed by Vanguard FTSE Global All Cap UCITS ETF (+€1.7 bn) and State Street SPDR MSCI All Country World UCITS ETF (+€1.3 bn).
Graph 9: The 10 Best-Selling ETFs, September 1 – September 30, 2026 (Euro Billions)
Source: LSEG Lipper
The flow pattern at the fund level indicated there was a lot of turnover and rotation during the month, but it also showed the concentration of the European ETF industry even better than the statistics at the promoter or classification levels since the 10 best-selling ETFs account for inflows of €10.5 bn.
Given its size and the overall trend for net sales at the promoter level, it was not surprising that five of the 10 best-selling funds for September were issued by iShares. These iShares ETFs accounted for estimated net inflows of €3.7 bn.
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.
