Passive exchange-traded funds (ETFs) domiciled in Europe[1] grew 5.1% in the third quarter to a record EUR 3.3 trillion, after investors added a net EUR 129 billion[2] even as the region’s benchmark dipped.
Assets in all passive ETFs worldwide increased 3.2% in the quarter to an all-time high of EUR 18.3 trillion, according to STOXX data, helped by rising US equity prices and investments in fixed income products. Assets in all STOXX- and DAX-linked funds reached a quarter-end record of EUR 228 billion at the end of September, 3.1% higher than at the end of June and 20% more than at the start of 2026. The funds attracted a net EUR 6.2 billion over the recent three months.
Optimism that AI-related investment is boosting economic growth continues to underpin market sentiment this year, helping to offset mounting concerns that renewed inflationary pressures could prompt central banks to raise interest rates. Yields on 10-year US, French and UK government bonds rose in September to levels not seen in more than 18 years. West Texas Intermediate crude futures climbed from USD 70 a barrel to more than USD 100 over the quarter.
The STOXX® AC World index rose 1.4%[3] in US dollars over the three months through September and is up 12.9% in 2026, headed for its fourth straight year of double-digit annual gains. The STOXX® Europe 600 dipped 0.7% in euros over the third quarter but is up 10.1% in 2026.
“Few would have predicted this level of returns for equities in 2026, but investors are looking beyond the headlines and focusing on growth in the economy and corporate earnings,” said Serkan Batir, Global Head of Product Development and Benchmarks at STOXX. “ETF innovation, meanwhile, is paying off. Even as market waters grow choppier, investors are putting money into ETFs, drawn by an increasingly sophisticated range of strategies that help them fine-tune their portfolios and express their market views.”
Figure 1: Europe-domiciled passive ETF assets (AuM) and net new assets (NNA) Q3, EUR bn
Figure 2: Global passive ETF AuM and NNA Q3, EUR bn
Third quarter trends
There were positive net flows during the quarter into equity ETFs targeting every region except Asia-Pacific (Figure 3). Funds with a US equities mandate led the investments, attracting EUR 157.8 billion over the three months. Funds investing in European equities had net inflows of EUR 10.1 billion.
Figure 3: Global passive equity ETFs Q3 NNA by investment region, EUR bn
By category, ETFs tracking an equity benchmark received a net EUR 139.5 billion in the quarter, the highest in the STOXX taxonomy, closely followed by investments in fixed income ETFs at EUR 131.1 billion (Figure 4). Factor equity ETFs attracted the third-highest amount, with EUR 44.3 billion.
Figure 4: Global passive ETFs Q3 NNA by segment, EUR bn
STOXX highlights
ETFs tracking a STOXX or DAX benchmark, factor, thematic or sustainability strategy received, overall, net inflows over the period (Figure 5). Inflows were strongest in September even as European indices dropped.
Figure 5: STOXX- and DAX-linked ETFs’ Q3 NNA by segment, EUR bn
Funds tracking STOXX and DAX European equity indices attracted a net EUR 4 billion over the July-September period, taking net inflows so far in 2026 to EUR 11.4 billion (Figure 6). They were followed by a net EUR 2.1 billion into STOXX- and DAX-linked ETFs investing in global equities.
Figure 6: STOXX- and DAX-linked equity ETF Q3 NNA by targeted region, EUR bn
STOXX leads inflows in European equities
STOXX remains investors’ first choice for underlyings in ETFs tracking a European equity strategy in 2026. ETFs linked to a STOXX or DAX index attracted 4 in every 10 euros invested in the asset class over the quarter, more than any other provider. Across all providers, the asset class has attracted EUR 30.7 billion in net inflows this year.
Figure 7 shows the top ten STOXX and DAX equity indices ranked by net investments into linked ETFs year to date.
The STOXX Europe 600 is the most popular benchmark for European equities this year based on passive ETF demand, attracting EUR 5.7 billion in the first nine months. Germany’s MDAX® and DAX®, on the other hand, have registered combined net outflows of EUR 1.8 billion.
Figure 7: STOXX, DAX equity indices – Top ten sellers, EUR bn
Funds tracking a STOXX or DAX equity index and targeting geographic regions outside Europe have attracted EUR 5.6 billion this year, reflecting interest in factor-based and thematic strategies. Figure 8 shows the top five STOXX and DAX non-EMEA indices by 2026 net inflows.
Figure 8: STOXX, DAX non-EMEA equity indices – AuM and NNA, EUR bn
New launches
Issuers launched 183 ETFs worldwide in the quarter. Seven of them track a STOXX or DAX index, including the Xtrackers Euro Stoxx ETF by DWS, SEI Ang Research Enhanced U.S. Large Cap ETF, iShares Asia Pacific AC ex-Japan Domestic Focus UCITS ETF and iShares Asia Pacific AC ex-Japan Foreign Focus UCITS ETF.
As 2026 enters its final quarter, the ETF industry continues to expand, with investors adding to traditional benchmark funds while also turning to factor, thematic and alternative strategies. Assets invested in passive ETFs have more than doubled since the end of 2022, underscoring the scale of the industry’s growth. Looking ahead, new investment strategies and wider adoption of ETFs in markets outside the US are likely to fuel further momentum.
[1] “Europe” is used as shorthand for EMEA throughout the article, and “US” for the Americas category.
[2] Source: STOXX. Data throughout the article include passive ETFs and start in 2022.
[3] Gross returns through September 30, 2026, in the currency stated.