Active ETFs Dominated Fund Forum; Simplicity Fuels ETF Growth

Nearly 2,000 delegates from more than 60 countries gathered at Fund Forum in Monaco this week to discuss exchange-traded funds. Active ETFs dominated panels and conversations, while speakers identified automated savings plans, digital trading platforms and low-cost passive ETFs as the main drivers of European ETF growth.

Panelists cited industry data that active ETFs represent about 3% of the European ETF market. Dan Caps, investment manager at Evelyn Partners, noted demand exists but market share for active strategies remains small. He expressed reservations about leveraged ETFs while saying they may bring new investors into the market.

Andrea Acimovic, portfolio strategist at Elston Consulting, warned that ‘Innovation is moving faster than investor education.’ She said new and leveraged products can harm investors who buy instruments they do not fully understand.

Yorick Naeff, head of innovation at ABN Amro and cofounder of Bux, described Bux’s shift from contracts for difference to automated ETF investing after its 2024 acquisition by ABN Amro. He cautioned on leverage, noting ‘investors lose money with leverage’ and that ‘eighty per cent would choose maximum leverage’ when offered.

Timo Slametschka, head of partnerships at Scalable Capital, reported that two-thirds of the platform’s assets are in ETFs. He said younger investors often discover ETFs through online searches and savings plans in Germany and that active ETFs will need simpler messaging to attract mass-market retail clients.

Private banking representatives said client education on active ETFs is incomplete. Vanessa Bonjean of Société Générale Investment Solutions observed younger clients may see ETFs as ‘cool’ without distinguishing passive from active. Ian Crispo of Deutsche Bank’s International Private Bank emphasized the need for investor education in private banking. Sai Tampi of HSBC Global Private Banking & Wealth said product positioning must explain what client need a fund solves.

Speakers discussed niche and leveraged products, such as 3x leveraged shares linked to prominent companies, and the use of technology in portfolio construction. Dan Caps said he is wary of leveraged ETFs but acknowledged that products attracting new investors can have positive effects. Yorick Naeff suggested agentic artificial intelligence could build and implement active strategies for retail clients.

Panelists estimated Europe is roughly five years behind the United States in ETF development. They said near-term growth will depend on how products are delivered and explained rather than on the specific strategies used. Automated savings plans, digital platforms and low-cost passive ETFs were cited as having driven most current adoption. Speakers called for improved investor education and simpler routes to ETF ownership.