US ETF Success Doesn’t Transfer Automatically to Europe

US ETF issuers that launch products in Europe frequently encounter low uptake because the region is split into many national markets with different distribution systems. Firms need local teams, country-level distribution relationships, UCITS compliance and a long-term presence to win business.

Matt Tagliani, Invesco’s Head of EMEA ETF Product, said many US issuers “have come to Europe and assumed that it would be sufficient to show up at the door with a shiny new product only to be met with limited enthusiasm if there’s no pre-existing relationship to lean on.” He added that client trust and cultural understanding affect how products are received across different countries.

Andrew Keegan, Head of Product for International at State Street Investment Management, noted that product innovation can attract initial interest but that distribution, client relationships and local expertise are needed to build market share. He said building scale requires ongoing engagement with wealth managers, private banks, insurance platforms, institutional investors, digital savings platforms and model portfolio providers in multiple jurisdictions.

Keegan warned many entrants underestimate the importance of UCITS credibility and operational standards. He said European investors evaluate factors beyond the index or theme, including liquidity, trading quality, local support, fund domicile and evidence of a long-term commitment to the market.

Adrià Beso, Head of Distribution at WisdomTree Europe, said experienced local teams that speak the language, produce country-specific research and understand each market’s distribution channels are often as important as product features. Executives report that tailored outreach and ongoing support influence intermediaries’ selection decisions.

Brett Eichenberger, Market Leader, Asset Management at Cohen & Co., cautioned that US brand recognition has less impact in Europe’s varied capital markets. He advised aligning market entry strategies with differences in capital markets and distribution. Cohen & Co. plans to expand its ETF accounting and advisory business into Europe later this year.

Industry executives describe the requirements for gaining traction as sustained investment in on-the-ground staff, reliable operational infrastructure, demonstrable liquidity and continued client support across jurisdictions.