Swiss Investors Lead European Shift to Active ETFs

The "Unwrapping the Wrapper" research, which surveyed 310 professional investment decision-makers, highlights a distinct Swiss strategy. Unlike their European counterparts who treat these funds as core portfolio holdings, half of Swiss investors utilize them primarily as satellite investments. This preference drives a higher demand for high-conviction and benchmark-independent strategies, with 40 percent of Swiss respondents favoring products that grant managers significant freedom in security selection.

Investment focus in Switzerland also deviates from the broader European appetite for U.S. equities. While 44 percent of European investors target U.S. markets, Swiss participants prioritize emerging markets at 43 percent. This local momentum mirrors a continental trend toward expansion: across the surveyed markets, expectations for active ETF allocations are set to rise from 10.2 percent to 14.6 percent within 18 months, with Swiss investors aiming for a more aggressive 21.3 percent.

Stefan Kuhn, Head of ETF Distribution EMEA at Fidelity International, suggests that high-conviction products will define the next phase of market growth. Despite this enthusiasm, professional requirements remain stringent. Roughly 79 percent of investors prioritize cost efficiency, closely followed by liquidity and transparency. As the number of active ETF products in Europe quadruples since 2023, the industry is bracing for rapid scale; assets in active UCITS ETFs are projected to surpass one trillion dollars by 2031.