• Active equity ETFs are currently used by 56% of institutional ETF users and 60% of intermediaries offering ETFs as part of their strategic allocation and liquidity strategies
  • On average, active ETFs currently account for 19% of total ETF holdings among institutional investors and 12% of ETF assets under distribution (AUD) among intermediaries
  • Significant growth in active ETF use projected over the next two to three years

August 12, 2026 — Active exchange-traded funds are on a strong growth trajectory in Europe among both institutional investors and fund distributors. According to new research from Crisil Coalition Greenwich, a steadily increasing number are turning to active ETFs, inclusive of equity, fixed income, thematic, and sustainability-integrated funds. All told, 43% of institutional investors and 67% of intermediaries that are currently invested in any ETF strategy say they are likely to see their active ETF holdings “increase moderately” or “increase significantly” in the next two to three years.

“Institutional, high net-worth and retail investors are increasingly using active ETFs as a vehicle for taking on strategic and/or tactical exposures in their portfolios,” said Crisil Coalition Greenwich Global Co-Head of Investment Management, Mark Buckley. “Looking ahead, private banks, financial advisors, insurance companies, and other fund distributors expect new demand for active ETFs to outpace that for passive strategies.”

Institutions and Fund Distributors Project Strong Growth for ETFs

To better understand how European investors are using ETFs, Crisil Coalition Greenwich conducted interviews with institutional investors and firms that distribute investment funds. Participants were asked about current and expected use of ETFs, how they select ETF products and managers, and their experiences working with ETF providers. Following are some of the key findings from the research:

  • Majority of institutional ETF users already investing in active ETFs: Although past usage centered largely on passive equity strategies, European investors also make extensive use of passive ETFs in fixed income and are increasing their employment of active ETFs. About 55% of current European ETF users are investing in active equity ETFs. Among European fund distribution platforms that offer ETFs to high-net-worth and retail investors, 60% now offer active equity ETFs, and over 40% offer active thematic ETFs.
  • Intermediaries primed for increased investor demand: Two-thirds of distributors currently offering ETFs expect investors on their platforms to increase allocations to active ETFs over the next three years, with the strongest growth projected for active equity ETFs, followed by active thematic and fixed-income products.
  • Room to grow: Active ETFs currently account for 19% of total ETF holdings for the typical institutional investor and, on average, 12% of total ETF AUD among intermediary distributors. In both cases, the share of active ETFs is higher among larger firms.

“European investors are replacing other types of active exposures with active ETFs, which they see as offering more favorable cost and liquidity advantages,” said Mark Buckley. “Active ETFs present a strategic growth path for asset managers. Firms that bring to market well-constructed, differentiated products paired with effective distribution—particularly in this rapid growth phase—are well positioned to seize this opportunity.”

The new research is part of the Crisil Coalition Greenwich ongoing series of institutional investment management snapshots tracking emerging trends and key industry milestones. For more information about this research, request Creating and Capturing ETF Demand.