Retail Is Rising: Why the Next ETF Growth Wave Belongs to the Crowd
The ETF market has never been more competitive. With more than 7,000 ETFs in the US and 3,200+ in Europe, success now depends on more than just clever structuring or smart exposures.
The question for issuers today isn’t “Can we build it?” It’s “Can we make it matter?” Because the story of 2025 is increasingly one of retail ETF growth — and how firms adapt to it.
And increasingly, the answer lies with a new kind of key investor: retail.
The Retail Shift Has Arrived
Retail investors are becoming the quiet engine of ETF growth across Europe.
Recent data shows ETF savings plans rose 42% year-on-year in 2024, while total assets grew 33%. Germany anchors the story with 9.5 million ETF savings plans and €168 billion in assets under management (AuM), but the momentum is spreading fast across France, the Nordics, and the Netherlands.
This acceleration is being powered by three major forces:
- Financial literacy is improving across younger demographics.
- Digital brokers such as Trade Republic, Scalable Capital, and BUX have made ETF investing as intuitive as using Spotify.
- Regulatory support is removing barriers and improving transparency.
The result? Retail isn’t just a passive participant anymore – it’s driving a wave of overall ETF growth that’s reshaping the industry’s path forward.
Retail Attention = ETF Relevance
Retail investors bring something institutions can’t: energy, conviction, and community.
They talk, they share, they rally behind funds that align with their values or their worldview. They create narratives that travel far beyond product fact sheets – and those narratives move assets.
In a world where attention drives flows, retail attention has become a new form of alpha. Think of how meme stocks or crypto ETFs turned online chatter into liquidity events.
The lesson is clear: attention compounds just like returns. For issuers and asset managers, silence is now riskier than noise.
Europe’s Retail Moment
Europe’s retail ETF market is maturing quickly. The rise of fractional and zero-commission trading as well as automated savings plans has transformed ETFs into an everyday financial habit.
What used to feel complex or institutional now feels familiar – even personal.
By 2028, Europe is expected to reach 32–36 million ETF savings plans and €650 billion in assets, nearly triple current levels.
This growth is being driven by:
- Younger investors making ETFs their default investment vehicles.
- Female investors closing historic participation gaps through accessible education.
- Behavioural shifts toward “set-and-forget” investing – small, consistent contributions that compound over time.
At the same time, investment platforms are shifting from being just low-cost brokers to full lifestyle brands. They’re competing on experience, storytelling, and trust, not just on fees. In response, issuers are teaming up with these platforms, helping educate investors, and tailoring their messages to local markets.
In this market, distribution now depends on brand as much as on product.
The New Playbook for ETF Brands
Retail investors don’t buy tickers – they buy stories. They connect to meaning, simplicity, and purpose. The ETF brands that build loyalty with this audience will follow a different playbook:
- Speak like humans.
Replace jargon with clarity. Retail investors don’t care about “smart beta exposure” – they care about what the fund does for them. - Lead with purpose.
Tie each ETF to a real-world theme or idea – AI, clean energy, infrastructure, or innovation. Retail investors back what they believe in. - Show up where retail lives.
Partner with platforms, creators, and educators. The next generation of ETF investors learns from podcasts, YouTube, and newsletters – not product PDFs. - Be consistent.
Brand trust builds through repetition and authenticity, not sporadic campaigns. The most trusted ETF names will be those that keep showing up – week after week, insight after insight.
Retail loyalty might look different from institutional stickiness, but when earned, it’s every bit as powerful.
From Flows to Followings
For decades, the ETF market was built around institutional precision – liquidity, efficiency, and cost. Those foundations still matter. But the next phase of growth will be built on culture, connection, and community.
Retail investors are turning ETFs into cultural assets: products that carry meaning and identity, not just exposure.
This evolution challenges traditional marketing. It’s not about campaigns; it’s about conversations (not about features; about beliefs).
ETF brands that understand this shift will capture not only assets – but advocates.
Attention Is the New Alpha
From Berlin to Paris to Stockholm, retail investors are no longer the sideshow in ETFs – they’re the main act.
They’re driving flows, building communities, and defining what success looks like in the next era of ETF growth.
For ETF issuers, platforms, and asset managers, the choice is clear: Keep blending into the noise, or embrace the era of retail ETF growth – where education, storytelling, and authenticity win attention.
At Blackwater, we work with ETF issuers to help them navigate this shift – combining strategy, brand positioning, and PR to connect meaningfully with today’s investor. Because in 2025, attention is market share.
Sources
- BlackRock & extraETF (2024) – ETF Savings Plan Study. BlackRock.
- EFAMA (2024) – Annual ETF Market Report. EFAMA.
- AMF (2024) – Retail Investor ETF Activity Report. Autorité des Marchés Financiers.
- State Street (2024) – ETF Growth Insights. State Street.
- FT (2024) – European Capital Markets and Retail Investing. Financial Times.
- CACEIS (2025) – 2025 Mid-Year ETF Market Snapshot. CACEIS.
