10.8 million savings plans
Record! The Germans are investing billions here
Updated on November 7, 2024 – 4:10 p.mReading time: 3 min.
The number of ETF savings plans in Germany continues to grow. The annual savings volume as well. And there is no end to the growth in sight.
At the end of September 2024, German investors set a new record with 9.5 million monthly ETF savings plans – an increase of 34 percent compared to the 7.1 million ETF savings plans in September 2023. This is shown by a current study by the investor portal extraETF on behalf of Blackrock .
At the same time, the annual savings volume invested in ETF savings plans in Germany also grew significantly by eleven percent from 14 billion euros to 15.6 billion euros. This means that Germany remains the most important market for exchange-traded index funds (ETF). But the trend for ETF savings plans is also gaining momentum in other European countries.
Outside Germany, the ETF savings plan market recorded growth of 160 percent to 1.3 million ETF savings plans executed – a year earlier there were around 500,000. The assets invested in them doubled from around one billion to two billion euros.
the number of savings plans among European investors rose to 10.8 million and the invested savings volume to 17.6 billion euros – an increase of 42 percent compared to 2023. With this growth, ExtraETF predicts that the number of savings plans in Europe will increase to 32 by 2028 million with an invested capital of around 64.3 billion euros.
ETF savings plans are becoming increasingly popular with long-term investors. In addition to their ease of use, the reasons include their low costs and the ability to build wealth with them. Read more about this topic here.
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With just a few euros per month, savers can invest widely in many different types of ETFs such as stocks, bonds, real estate or raw materials and flexibly adapt their savings plans depending on their equity and investment goals. Read more here about how you can benefit from distributions and appreciation with dividend ETFs.
According to the study, with the increasing demand for index products, the number of providers of ETF savings plans is also growing. In Europe, investors can now choose from over 3,500 ETFs, and more and more issuers and brokers are including ETFs in their offerings.
In Germany, investors can buy ETFs from global providers such as iShares (Blackrock), Vanguard or SPDR. European asset managers such as Amundi, Xtrackers (DWS) and Lyxor also offer German investors numerous ETF products.
Brokers operating across Europe, such as XTB, Saxo and Shares, but also established banks such as ABN Amro in the Netherlands, the financial institution Postfinance or the broker Neon in Switzerland, are increasingly introducing ETFs and ETF savings plans in other European countries. This expansion reinforces European growth as more investors in different markets gain access to low-cost and flexible ETF savings plans.
This trend is accompanied by product innovations and an expanded range of services. International providers are increasingly pushing into the European ETF savings plan market and are driving its growth further.
According to a study by Blackrock and the market research institute Yougov, 80 percent of 18 to 34 year olds (Generation Z and Millennials) prefer digital brokerage platforms to invest in exchange-traded index funds. Brokers took advantage of this situation by imparting knowledge and offering all investors a low-threshold offer of ETFs.
However, according to the ETF study, average savings rates are also falling. This is because young people have less capital than those who are already in the middle of their careers. The providers are trying to counteract this by lowering minimum savings rates for ETF savings plans in order to attract new investors and make it easier for them to start investing.
Access to these investment options. The widening availability of ETFs and the rise in popularity of savings plans signal a significant shift in the investment landscape across Europe.
Key Insights:
- Growth of ETF Savings Plans in Germany:
– By September 2024, there were 9.5 million monthly ETF savings plans in Germany, marking a 34% increase from 2023.
- The annual savings volume also increased by 11%, rising from 14 billion euros to 15.6 billion euros.
- European Market Expansion:
– The number of ETF savings plans outside Germany surged by 160%, reaching 1.3 million, with assets invested in these plans doubling from 1 billion to 2 billion euros.
– European investors have 10.8 million savings plans with a total invested volume of 17.6 billion euros, an increase of 42% from the previous year.
- Future Projections:
- The growth trend suggests that by 2028, the number of ETF savings plans in Europe could rise to 32 million, with an average invested capital of about 64.3 billion euros.
- Investor Preferences:
– ETF savings plans are favored by long-term investors due to their low costs, convenience, and effectiveness in wealth accumulation.
– Investors appreciate the ability to diversify investments across various ETFs such as equities, bonds, and commodities, allowing for adaptable savings strategies based on personal goals.
- Increasing Competition and Variety:
– The number of available ETFs in Europe exceeded 3,500, with numerous issuers and brokers likely to expand their ETF offerings, providing investors with more choices.
– Major global providers (e.g., iShares, Vanguard) and European asset managers (e.g., Amundi, Xtrackers) contribute a wide range of ETF products available to German investors.
- Broader Accessibility:
– Brokers such as XTB, Saxo, and established banks are increasingly offering ETFs across various European regions, enhancing market accessibility for investors interested in ETF savings plans.
Conclusion:
The ETF savings plan trend is undeniably on the rise within Germany and across Europe, characterized by increasing participation from both individual investors and institutional providers. With growing use and a more comprehensive suite of options becoming available, ETFs present a compelling avenue for modern investment strategies focused on long-term growth and diversification.