Morningstar has published a monthly snapshot of European ETF and ETC flows, which gathered EUR 49.7bn of net flows in February 2026, almost matching EUR 49.8bn in January.
“European ETFs and ETCs have seen the strongest start to a year on record, with equities continuing to dominate flows as investors prioritise global, European and emerging‑market allocations. In a more uncertain market environment, ETFs continue to be used as efficient tools for reallocating risk and maintaining diversification.
“At the same time, we’ve seen a cautious stance toward US large‑cap growth exposure, alongside notable outflows from gold ETCs, suggesting investors are reassessing both concentration risk and traditional defensive positioning.
“Assets are closing in on EUR 3 trillion, but whether the market surpasses this milestone will depend on how markets digest ongoing volatility after a shaky start to March,” commented Jose Garcia-Zarate, Senior Principal at Morningstar.
Key takeaways:
- Record-setting year-to-date pace: EUR 93.5bn of net flows in the first two months of 2026, surpassing the EUR 91.3bn gathered in Q1 2025.
- Equities dominate: Equity ETFs took in EUR 41.0bn (up from EUR 36.9bn in January), representing close to 88% of total flows. Investors continued to prioritise global, European and emerging markets allocations.
- Caution toward US large-cap growth: ETFs in the US large-cap growth category (where Nasdaq-100–tracking products sit) saw EUR 1.1bn of outflows, while investors looking for US exposure leaned toward equal-weight approaches.
- Bond inflows eased but stayed positive: Bond ETF flows were EUR 5.2bn (down from EUR 8.8bn in January), with euro corporate and short-term government strategies remaining in favour.
- Real assets/commodities saw outflows – especially gold: Real asset ETFs and ETCs posted EUR 3.2bn of outflows, mostly from gold ETCs. Precious-metals ETCs have shed EUR 4.3bn so far in 2026.
- Active ETFs: steady flows, but share lower vs 2025 average: Active ETFs gathered EUR 2.3bn in February (vs EUR 2.7bn in January). Active flows represented 5.3% of total ETF flows in the first two months of 2026 – below the 7.4% average in full-year 2025. Active ETF assets stood at EUR 85.2bn at end-February (up from EUR 82.8bn in January), just shy of 3.0% of total European ETF assets.
A full copy of the report is available here.
