ETF choice isn’t the problem — investors need guidance

ETF issuance in Europe has accelerated since 2020, and industry figures say the priority is helping investors compare and select products. Launches have roughly tripled since 2020, with active, leveraged and thematic ETFs making up about 75% of new listings, up from 56% in 2020.

The shift has expanded the range of ETF building blocks available to advisers and retail investors, while the number of ETF issuers remains relatively small. Hector McNeil, co-CEO and founder at HANetf, noted the market has far fewer ETF issuers than mutual fund providers: ‘There are tens of thousands more mutual funds than ETFs. In fact, there are only 170 ETF issuers in Europe and over 4,500 mutual fund providers.’ He argued that packaged ETF solutions could make it easier for retail clients to access suitable allocations.

Industry specialists expect artificial intelligence to play a role in initial fund research and comparison. Andrea Acimovic, portfolio strategist at Elston Consulting, described AI’s strength at analysing large data sets quickly, comparing holdings, spotting overlaps, reviewing prospectuses and highlighting risks. She added: ‘AI can tell you what an ETF does. It can’t always tell you whether you should own it.’

Jean-Pierre Ané, deputy CEO at Kepler Cheuvreux and head of Trackinsight’s data partner group, referenced a 2026 research paper showing generative AI appearing in investor decision processes. Trackinsight estimates traffic referred by AI assistants rose fivefold between 2024 and 2025, suggesting growing use of AI tools to discover and shortlist ETFs, and continued reliance on data providers to verify product details and compare alternatives.

Some executives expect AI to move beyond research into portfolio construction. Yorick Naeff, head of innovation at ABN AMRO, predicted a gradual shift from advisory and discretionary mandates to execution-only approaches in which AI agents perform much of the work, and he warned this could put pressure on margins and fees as basic investment products become more standardised.

Alongside AI, market participants are promoting model portfolios and ETF-of-ETF funds as ways to offer diversified exposures in a single product. McNeil advocates risk-weighted ETF model portfolios and ETF-of-ETF funds as low-cost, scalable options for investors. ‘If you had an ETF of ETF risk-weighted portfolios, then an investor can buy as little as one ETF,’ he said.

Industry participants expect a range of approaches to coexist. Some investors may delegate much of the process to AI-driven tools, others will use robo-advisers and model portfolios, and many will continue to work with human advisers who use technology to support research and portfolio management. Providers and platforms are developing services to help clients compare products, validate recommendations and implement allocations as the European ETF market grows.