Active ETFs dominate talks as simple ETFs drive Europe’s growth

At Fund Forum Monaco this week, nearly 2,000 delegates from more than 60 countries attended panels and sessions that placed active exchange-traded funds at the top of the agenda.

Speakers noted strong industry interest in active ETFs but referenced data presented at the conference showing active strategies make up roughly 3% of the European ETF market. Dan Caps, an investment manager at Evelyn Partners, described that gap while discussing structural barriers to wider adoption.

Delegates identified distribution channels as major drivers of ETF growth. Yorick Naeff, head of innovation at ABN Amro and cofounder of the app Bux, described how Bux shifted from contracts for difference to automated ETF investing after the firm joined ABN Amro in 2024. Timo Slametschka, head of partnerships at Scalable Capital, reported that about two-thirds of Scalable Capital’s assets are held in ETFs and said discovery via online searches and automated savings plans encourages younger investors to use ETFs. Slametschka added that active ETFs “won’t be an easy sell” to mass-market retail investors and that issuers will need simpler messaging.

Speakers raised concerns that product innovation is outpacing investor knowledge. Andrea Acimovic, portfolio strategist at Elston Consulting, warned: “Innovation is moving faster than investor education.” She and others pointed to complex products, including leveraged ETFs, as risks for inexperienced investors. Dan Caps expressed reservations about leveraged products such as a 3x long single-name product but acknowledged they can attract new people to investing.

Private bankers and wealth managers reported interest in ETFs alongside caution. Vanessa Bonjean, head of fund selection at Société Générale Investment Solutions, said younger private banking clients often see ETFs as “cool” and may not distinguish passive from active funds. Ian Crispo of Deutsche Bank’s International Private Bank emphasized the need for investor education on active ETFs within private banking. Sai Tampi of HSBC Global Private Banking & Wealth said: “The story matters as much if not more than cost. The question is what client need are you solving?”

Panelists estimated that Europe is running about five years behind the United States on active ETF adoption and shifted the discussion to how active ETFs should be allocated in portfolios and explained to different client segments. Some participants mentioned future tools such as agentic artificial intelligence to help build portfolios and implement strategies on behalf of investors.

Delegates reported that automated savings plans, digital platforms and low-cost passive ETFs have driven much of the recent rise in ETF use in Europe. They also said active ETF launches and other product innovations are expanding the range of available choices and are prompting calls for clearer investor education and simpler messaging.