Italy’s ETF AUM Hits Record €193.26B on ETFplus

Italy’s ETF market reached a record €193.26 billion on Borsa Italiana’s ETFplus in March 2026, a rise of nearly 26% from the same month a year earlier. The increase reflects flows from institutional investors and growing retail participation through established financial channels and newer digital platforms.

State Street data show listings on Italian exchanges climbed from €34 billion in 2014 to €121 billion in 2024, with activity on ETFplus pushing the total to the March 2026 peak. Market participants point to distribution by private banks, advisory networks and hybrid brokers alongside expanding digital infrastructure.

Luisa Fischietti, Head of ETF Primary Markets & Distribution at Euronext, said: “ETF growth in Italy is being driven by a combination of institutional and retail flows.” She highlighted that institutional investors use ETFs for both strategic and tactical allocation, while improvements in digital systems and wider use of savings plans are supporting retail uptake.

Private banking groups and advisory firms continue to distribute a large share of ETF volumes. FinecoBank’s 2026–2029 industrial plan refers to a “deep transformation” in saver behavior driven by intergenerational wealth transfer and stronger demand for automated investing tools.

Investor demand remains weighted toward familiar exposures. Annacarla Dellepiane, Head of Southern Europe at HANetf, noted a longstanding preference among Italian investors for fixed income, particularly government bonds, which are often held directly rather than via ETFs. HANetf also records interest in defensive and income-oriented themes, including defence-related strategies, gold, miners and other hard assets.

Trading patterns show equity ETFs lead in trading volumes, followed by fixed income. Euronext identifies three growing segments in Italy: active ETFs, thematic products popular with retail buyers, and developments in digital assets. Dellepiane added: “Active ETFs are generating interest, but they often require more explanation. Unlike passive ETFs… active strategies need to be clearly positioned in terms of manager skill, portfolio construction, investment objective and role in a portfolio.”

Younger investors are increasingly using digital platforms and represent a growing source of direct ETF demand, though they remain a smaller share of the overall investor base. Dellepiane said some retail clients perceive private banking services as effectively free, which can make fee comparisons with direct ETF investing harder.

Euronext describes ETFplus as a regulated venue that has expanded ETF participation by offering liquidity, transparency and investor protections that support issuers, distributors, advisers and end investors.