European Investors Return to Thematic ETFs

The latest data from HANetf reveals a sharp shift in sector preferences, led primarily by the semiconductor industry. Memory chip ETFs outperformed the broader market, drawing $7.1 billion in capital. This momentum pushed semiconductors past defense-themed funds, which secured $4.25 billion. Infrastructure and industrial equipment products also enjoyed sustained interest, capturing $3.97 billion and $2.41 billion respectively, while robotics and cybersecurity rounded out the top performers with $2.27 billion.

This renewed appetite for niche strategies coincides with an unprecedented expansion of the European ETF industry at large. LSEG Lipper reports that net inflows reached 346.7 billion euros by the end of September, already surpassing the previous annual record of 332.5 billion euros. Equity ETFs remain the primary engine of this growth, accounting for 267.6 billion euros of the new capital as investors diversify their portfolios beyond traditional broad-market indices.