Ireland now administers 70% of Europe’s exchange-traded funds (ETFs), with the market growing by 41% in 2025 to pass €2.7 trillion in assets under management, according to new research by EY Ireland.
ETFs are a diversified investment fund that track specific market assets, commodities, or sectors and trades like a stock. ETFs have seen a global surge in demand, fuelled by younger investors and easy access through platforms like Revolut.
The global ETF market grew by 33%, from $14.9tn (€12.6tn) to $19.9tn (€16.8tn). A rew report by EY forecasts that ETF assets under management will more than double to €5tn in Europe and $40tn (€33tn) worldwide by 2030.
“2025 was another stellar year for the European ETF market – we’ve seen record highs, record inflows, and record adoption, all set against one of the most unpredictable years any of us can remember,” said EY’s Lisa Kealy. “We are not operating in the same world we were in even 18 months ago, yet ETFs haven’t just held firm, they’ve delivered their strongest year on record. ETFs aren’t just outpacing mutual funds – they’re outpacing private markets. Their growth is not a short‑term trend, it is a structural shift that is redefining the market.”
While EY describes Ireland is the “engine room” of Europe’s ETF market, with the regulatory and tax system attracting financial institutions to set up here, EY said the State’s tax system acts as a barrier to individual investors here. Ireland’s tax system means that domestic investors in ETFs face an exit tax of 38%, and ETFs are “deemed disposed” after eight years even if they haven’t been sold.
“Ireland must empower Irish retail (individual) investors to participate fully in the growth they are helping to power,” said Ms Kealy. “Clients are telling us that this could mean looking again at the existing tax treatment and disposal rules, introducing genuine savings incentives like those which have proven successful in other European countries, and making it as easy for individuals and households to invest as institutions. It is hugely encouraging that this appears to be on the Government’s agenda. If policymakers get this right, Ireland will become the jurisdiction others look to and follow.”
The EY research found that 72% of European investors planning to make their first ETF investment within a year are aged 44 or under. EY said online brokers and neobanks are increasingly engaging in the ETF market through low-cost offers, portfolio management tools, and fractional investing. EY noted Revolut has added hundreds of ETFs to its trading platform while Monzo has partnered with BlackRock to offer ETFs through its app.
Active ETFs – exchange‑traded funds managed by professional portfolio managers – grew 65% worldwide to reach $1.9tn in assets under management in 2025. EY forecasts this will reach $6tn in value by 2030, “drawing a diverse new mix of issuers into the market”.
