Investment in ETFs through digital platforms grows 33% in one year

The growth of passive management in Europe is an unstoppable trend, as in the rest of the world. According to Morningstar, The listed funds have raised 161,000 million euros in the yearwith data until October, a figure that points to a record volume of net flows, above 159,000 million in 2021. In fact, ETF assets have already surpassed the two trillion euro barrier in the European marketof which 70% are invested in variable income strategies.

This increase in exchange-traded funds is supported, above all, by the use made by institutional investors, used more tactically for their short and medium-term strategies, although the penetration of active ETFs, those that do not simply replicate an index , is growing.

But retail investors are increasingly signing up to contract this type of vehicles through digital platforms or neobrokers (as opposed to traditional financial institutions), to the point that Investment in ETFs in this way has grown by 33% since last year to reach a volume of 266 billion eurosaccording to data collected in the latest report prepared by exETF and BlackRock.

The commitment of firms such as Trade Republic, Scalable Capital, Revolut, N26 or through direct investment, taking into account that they have been able to take advantage of the pull of large technological values ​​more easily.

This growth is mainly due to Germany, one of the markets where passive management has had the greatest penetration in recent years. And not only through the direct contracting of ETFs but also through the so-called investment plans, which have become very popular among Germans, especially thanks to the capillarity achieved by firms such as Scalable Capital or Trade Republic.

According to the aforementioned study, ETF trading through digital platforms has reached a volume of 168 billion euros in Germany24.4% more than last year, while the assets invested in savings accounts have grown by 11.4% to reach 15.6 billion. In the rest of continental Europe the percentage of growth is higher, but we must take into account the lower volume from which they started. Since last year they have experienced an increase of almost 51%, up to 98,000 million in direct contracting, while in savings plans the volume has doubled, up to 2,000 million euros.

This interest in passive management by investors through the contracting of investment accounts translates into 10.8 million plans contracted monthly in Europe this year, compared to 7.6 million in 2023, of which 9.5 millions are from German investors. These figures allow the specialized media exETF to assure that its forecast of reaching 32 million accounts in 2028 will be met, with an estimated savings volume of 650,000 million euros.

WhatsAppTwitterLinkedinBeloud