ETFs 2026: “The vehicle of choice for many private investors”
Active, buffer, or duration ETFs—there are always new concepts coming onto the market. However, according to industry insiders, the majority of funds will continue to flow into the major stock indices.
January 6, 2026. FRANKFURT (Deutsche Börse). After a record year comes another record year – many expect 2026 to be another superlative year for the ETF market. “ETFs are currently the fastest-growing investment product in Europe,” according to BlackRock's People & Money study. According to the study, 1.6 million new ETF investors are expected to join the market in Germany alone over the next 12 months.
This would continue the success story of ETFs. Between 2022 and 2025, the number of ETF investors in Germany rose from 9.2 million to 14.5 million. “What began 25 years ago in Europe as an instrument for institutional investors has developed into an investment option that today helps millions of people shape their long-term financial future,” the study states. Stefan Kuhn, Head of ETF & Index Distribution at Fidelity International, sees three reasons for the triumph of ETFs: cost efficiency, easy market access, and regulatory certainty. “As long as these three drivers remain in place, ETFs will continue to be the vehicle of choice for many private investors.”
Active ETFs: “The big test is still to come”
Active ETFs were a hot topic in 2025. According to Michael Mohr, global head of Xtrackers products at DWS, the market will continue to grow. “We are seeing a large number of new providers entering the market. In addition to traditional ETF providers, these include previously purely active managers, US asset managers, and even completely new companies,” he explains in an interview with the ETF platform ExtraETF. He believes that, in addition to professional fund investors and asset managers, private individuals and independent decision-makers will also become increasingly interested in active ETFs.
For Stefan Kuhn of Fidelity, active ETFs are no longer a niche phenomenon. Initial studies also suggest that active ETFs are performing well in terms of performance. “The big test, for example in a prolonged bear market, is still ahead for active ETFs. But if the initial positive signs are confirmed, this could give the product class a further boost,” he emphasizes.
“Not everything can be transferred one-to-one to the passive sector”
Frank Mohr, Head of ETF Trading at Société Générale, also believes that the success of active ETFs will continue. However, he also sees limitations: “Not all investment concepts from the active sector can be transferred one-to-one to the passive sector,” he emphasizes, referring to the role of market makers in the ETF business. They need to know the concept precisely in order to calculate the ETF price. “However, some fund managers from the active sector are reluctant to make their concept public.”
ETFs with a safety buffer (“buffer ETFs”) are also relatively new. Similar to active funds, they track the performance of a stock index up to an upper limit and at the same time offer a buffer against downward losses – implemented via options. “This type of ETF is extremely successful in the US,” notes Frank Mohr. He also expects further new products for Europe. However, given the extensive range of certificates available in this country, he does not anticipate a similar development to that in the US.
“Term ETFs remain attractive despite lower yields”
In the bond sector, term ETFs issued for the first time in 2023 also attracted considerable funds. “These products combine the advantages of bonds – such as a fixed term, more predictable potential interest income, and repayment at the end of the term – with the diversification and liquidity advantages of ETFs,” explains Mohr from DWS. Despite slightly lower yields, he continues to view them as a good instrument for locking in current yields for the long term or for a specific period.
Boost from pension reform in Germany
Despite ever-new concepts, the bulk of funds flowed into standard indices in 2025. “Basically, I continue to see the highest inflows in the major categories such as global equities from developed markets or individual themes,” explains Michael Mohr from DWS. On the product side, he expects differentiation to continue, for example through further types of active ETFs or structures that offer attractive opportunities even in volatile market phases.
Frank Mohr of Société Générale expects the planned pension reform and “early retirement” in Germany to give the ETF market a further boost. “ETFs are likely to play a key role in this,” he is convinced. DWS welcomes any step towards encouraging the population to make private provisions for their retirement. “In addition to the individual benefits for investors, this also means that more money flows from bank accounts into companies, which can support positive economic developments,” explains Michael Mohr.
By Anna-Maria Borse, January 6, 2026 © Deutsche Börse AG
About the Author
Anna-Maria Borse is a finance and economics editor specializing in financial markets/stock exchanges and economic issues.
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