Around 400 professionals from the investment industry gathered on 21 October 2025, for the 16th ETF Forum at Kap Europa in Frankfurt. As one of Europe's largest industry events, the conference offered a comprehensive overview of the trends and challenges in the ETF market—from structural growth and technological innovations to regulatory developments.

25 Years of ETFs on Xetra - A Success Story

In his opening speech, Eric Leupold, Head of Cash Market at Deutsche Börse, recalled the beginnings in Germany: "25 years ago, we started with just two ETFs - today, there are more than 2,500 listed products, and in terms of assets under management, the European market has already surpassed the three trillion US dollar mark." According to the latest figures from BVI, the assets under management in ETFs for German investors amounted to around 500 billion euros in June 2025 - a significant increase from 309 billion euros in June 2023.

According to Leupold, ETFs democratize the capital market, combine institutional efficiency with access for retail investors, and make a crucial contribution to financial literacy in Europe.

He emphasized the growing importance of private investors, whose trading share has doubled to around 15 percent over the last 5 years. Special programs, such as the retail offering for ETFs launched in March, have ensured that retail orders worth over 2 billion euros benefited from price improvements.

Industry Roundtable: Navigating the ETF Landscape of Tomorrow

The forum's opening panel set the tone for the content: Gregoire Blanc (Amundi), Jim Goldie (Invesco), and Jamie Hartley (Xtrackers) discussed the future development of the industry.

The conclusion: The ETF market is in a phase of profound transformation. Trading volume has doubled since 2020, with market liquidity in some segments approaching US levels. This growth is particularly evident in institutional trading, including large single orders, and especially in the retail market.

Goldie pointed to the enormous increase in standard trading volumes, noting that normal volume today is twice as high as it was in March 2020. Hartley sees digitalization opening up new avenues of access for private investors.

Goldie emphasized the importance of an efficient framework, while Blanc called for clear standards to counteract the fragmentation of the European market.

There was a consensus that Europe is at a turning point - transforming from a continent of savers to one of investors. Key success factors include savings plans, fractional share trading, and the ongoing professionalization of market structures.

Global Economic Outlook: Investing in Uncertain Times

The macroeconomic outlook is also a tradition. Jens Eisenschmidt (Morgan Stanley), Tuan Huynh (BlackRock), and Simon MacAdam (Capital Economics) were cautiously optimistic: While the US is weathering the economic "storm" better and benefiting from the AI boom, which could last for a while, Europe faces structural challenges - from bureaucracy and demographic burdens to geopolitical risks. Although infrastructure and defense spending provide some stimulus, growth remains limited.

Eisenschmidt expects that the main effects of global trade conflicts are yet to come. Huynh emphasized the resilience of the markets and the growing importance of infrastructure investments, while MacAdam pointed to an overall subdued but stable global economy.

Active ETFs: Unlocking Alpha and Enhancing Portfolio Performance

In the discussion on Active ETFs, Ilia Chelomianski (Fidelity), Barbara Claus (FondsConsult), and Simon Werkheiser (J.P. Morgan) emphasized the importance of active strategies in an increasingly differentiated market.

Claus pointed to the requirements for product quality: at least a five-year track record or - if not possible due to the novelty of the trend - a proven performance over three years with four market cycles. "Outperformance must exceed the costs," said Claus. The experts currently see particular opportunities for active management in the bond sector.

Strategies for Stability and Yield in 2025: Capturing Emerging Opportunities

Paras Bakrania (First Trust), Florian Körner (VanEck), and Andre Voinea (HANetf) dedicated their session to new product trends.

For Voinea, the focus is on armament and defense investments. The market is growing, driven primarily by retail demand from Germany, and increasingly under sustainability criteria as well: There are now Article 8 funds that include defense stocks.

Private investors are increasingly focusing on diversification, reducing currency risks, and specifically leveraging interest rate differentials. Körner also observes that private investors primarily focus on equities, while professional investors target regular distributions with dividend stocks and income-oriented strategies like covered calls.

A new trend is Buffer ETFs, which limit downside risks and cap potential returns - making them particularly interesting for investors in the withdrawal phase. "Education is the key," for Bakrania.

Optimizing ETF Execution: Strategies and Tools for the European Market

In the panel on trade execution, Robin Mess (XYT), Frank Mohr (Société Générale), and Alex Roubaud (BlackRock) explained the technical evolution of trading since its beginnings.

The change is clear: from manual order processes using Excel lists to algorithmic trading and automated market-making structures. "Algo-trading and market making are increasingly converging," explained Mohr.

The panel's conclusion: There is no single trading path, but rather a multitude of execution options - the key is transparency regarding price quality and liquidity.

The Growing Popularity of ETFs with Retail Investors: Impact on Investor Behavior and Market Structures

Finally, Sören Ganz (flatexDEGIRO), Axel Schmidt, and Sven Schumann (both from Deutsche Börse Group) addressed the behavior of private investors, a topic frequently mentioned throughout the day.

Schumann pointed to a division of investors into three groups: About 30 percent already invest regularly, 30 percent do not yet, and 30 percent currently cannot afford to. The goal, he said, must be to "reach the middle 30 percent."

Ganz discussed the strong growth in savings plans, which enable investors to invest regularly even with small amounts and build long-term wealth.

Schmidt emphasized the importance of costs. Investors pay particular attention to explicit fees, while implicit costs are less accessible. In the long term, he expects order costs to drop to zero. This is where the Xetra service for private investors comes in. With the new offering for ETFs, private investors have already achieved price advantages averaging €7.50 per order. Furthermore, an extension of trading hours is planned.

Afternoon Workshops: Strategies, Innovation, and Practical Knowledge

In six afternoon workshops, the ETF Forum offered practical insights into key future topics for the industry.

The "Entering the ETF Market" workshop focused on the paths and challenges for new providers - from regulatory requirements to economies of scale and brand building. "Bitcoin, Ethereum & Co." highlighted the opportunities and limitations of crypto assets in institutional portfolios: digital assets are increasingly seen as a strategic allocation but remain volatile.

Thematically focused investments were the center of "European Defense and AI," where defense spending and technological innovation were discussed as long-term growth drivers. The "Future Trends in the Post-Trade ETF Ecosystem" workshop showed how the new T+1 settlement regime and efficiency initiatives like ICSD+ are changing the market infrastructure.

With "Cross Asset ETF Options Overlays," advanced strategies were presented that improve return potential and risk management through the targeted use of options. Finally, "The Power of Data" illustrated how data-driven analyses - on topics such as liquidity, costs, and capital flows - enable well-founded investment decisions.

Conclusion: Think Big!

The ETF Forum 2025 impressively demonstrated how much the European ETF market has professionalized and diversified. Whether in institutional trading, among retail investors, or in product innovation- growth, digitalization, and regulation form the three central pillars.

The message of the day was summarized by Eric Leupold in his opening speech: "The next 25 years will not be decided by size alone, but by innovation and collaboration. Think big!"