ETFs are increasingly popular with Italian and European investors, who are increasingly purchasing this instrument, created to bring finance closer to small investors and savers. According to research by BlackRock, entitled “People and Money 2025“, carried out in collaboration with YouGov on over 40,000 investors present in 15 European countries, there has been substantial growth in the European ETF market in the last three years.
“Research shows that ETFs are fast becoming the investment of choice for younger generations. Their simplicity, low cost and ease of access make them ideal for novice investors, particularly those attracted by the opportunity to increase the value of their savings”
explains Timo Toenges of BlackRock.
The exponential growth of the European market
From 2022 to date, ETF adoption in Europe has increased by 69% since 2022. According to the research, ETF investors in Europe have reached almost 33 million, of which 40% (13.2 million) invest in iShares ETFs, with growth driven by women and younger generations.
Over the next 12 months, another 21 million say they want to invest. Of these, approximately 8.7 million (41%) would be entering the world of investments for the first time
More specifically, the UK, Germany, France, Italy and Spain are expected to add a combined 6.6 million new ETF investors over the next 12 months, accounting for 77% of all expected new ETF investors in Europe.
The Italian case
In this scenario, Italy confirms itself as one of the most dynamic markets: it already has 2.4 million investors, the fourth largest country in Europe, and an increase of 50% is estimated within a year, equal to 14% of the expected European growth.
The ones pushing this trend in Italy are above all the younger ones, in particular those aged between 18 and 34 (+32% from 2022 to 2025), highlighting the growing interest in these tools among the new demographic groups. Among Italians who plan to invest in ETFs in the next 12 months, 56% will be made up of investors with their first experience with ETFs and 56% are under 44 years old.
Which ETFs
But which ERFs do you buy? Preferences in the choice of products reward equity ETFs both in Europe and in Italy. In particular, when asked about investment intentions at a regional level, 69% of Europeans intend to do so in European exposures (vs. the corresponding 64% in Italy).
Younger people (range 18-34 years) on the other hand continue to show a relatively greater interest in ETFs/ETPs on crypto, monetary and assets, compared to those over 35 years of age, with a percentage of 33% in Italy.
Reasons for investing in ETFs
Among Millennials (25-34 years old), having greater control over their financial future is the key motivation to start investing (38%), with 23% wanting to use what they earn from their investments towards a specific future life goal. Generation Z (18-24 years old) on the other hand is more likely to start after being encouraged by friends, family and colleagues.
Overall, the research reveals that both Generation Z and younger Millennials are more likely to be motivated by the fear of “missing out”: 28% compared to 19% of those over 35.
When those interviewed were asked what behaviors they considered fundamental to becoming competent investors and confident in investing, the responses at a European level highlighted: the ability not to be carried away by emotions in case of volatility (45%), the approach to diversification (43%), the understanding of risks (40%), the possibility of regularly investing small sums (38%) and basic training to learn how to invest (31%).
In Italy, specifically, 49% of investors consider diversification fundamental. In contrast, 41% of Italian “non-investors” highlighted the importance of understanding the risks while 31% believe that learning the basics is what would make them more confident in investing.
Let’s look at the elements that younger investors appreciate in ETFs, the research shows how 47% of young Italians aged between 18 and 34 are more likely to choose ETFs for the possibility of investing small sums on a regular basis, compared to all of the interviewees who indicate this motivation for 35%.
