Industry Updates

BlackRock: Total ETF savings plans in Europe to rise to 32 million by 2028

A quadruple increase from current levels

Tom Eckett

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The number of ETF savings plans across Europe is set to quadruple over the next five years, according to research conducted by BlackRock and extraETF.

The research forecasted there will be 32 million ETF savings plans executed on a monthly basis across Europe by 2028, up from 7.6 million in September.

Total annual investments in ETF savings plans will increase to €64.3bn, up from current levels of €15bn, as retail ETF adoption continues to grow across the continent.

While there is a wide array of ETFs available on digital platforms, the research found ETFs that track global benchmarks such as the MSCI World account for 12 out of the 20 most popular exposures.

The analysis covered the current market for ETF savings plans in Germany, France, Italy, Austria and Spain.

ETF savings plans have skyrocketed in popularity in recent years as retail investors benefit from the simplicity and low-cost structure as well as the ability to accumulate wealth over time.

According to BlackRock and extraETF, there were just 500,000 ETF savings plans in Germany in 2017, with this figure jumping to one million in May 2019 and two million in December 2020.

While Germany remains the largest market for ETF savings plans, Austria has experienced significant growth with one in three individuals already investing in ETFs, according to the research.

This has driven an influx of foreign providers and the debut of commission-free brokerage platforms to the market.

Christian Bimüller, head of digital distribution in continental Europe at BlackRock, commented “The surge in ETF savings plans shows that many Europeans are becoming investors to achieve their long-term financial goals.

“The pan-European expansion of commission-free brokerage platforms and the adoption of local players is now accelerating the use of ETF savings plans across Europe, bringing investing to millions more Europeans.”

BlackRock has been busy cementing its position in the digital wealth space with several investments and partnerships in recent months with firms such as digital bank Monzo and Germany fintech Upvest.

“What is happening in Europe, with the rise of its capital markets and the utilisation of ETFs, we are winning big market share in that business,” the firm’s founder and CEO Larry Fink said on its Q3 earnings call.

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