Germany’s ETF Market Surges as Retail Investors Embrace Passive Funds

The growth is heavily concentrated among a handful of index providers. MSCI currently commands 55 percent of the German market, with its MSCI World index family alone accounting for 178 billion euros. This preference for global diversification is particularly pronounced among retail investors, who now hold over two-thirds of all ETF assets in the country. Data from the German Investment and Asset Management Association (BVI) confirms that between mid-2023 and mid-2025, nearly 90 percent of new retail fund investments flowed directly into ETFs.

While passive products continue to dominate with 97.6 percent of total assets, active management is carving out a niche in new product launches. Although active ETFs currently represent only 16.6 billion euros, they account for 37 percent of recent fund debuts. Industry experts anticipate further momentum from the federal government’s upcoming retirement savings reform. Set for a January 2027 launch, the initiative aims to modernize private pension provision by prioritizing performance-oriented portfolios, a move DWS executives describe as a potential turning point for German investment culture.