The proportion of UK investors using ETFs has risen by 57% since 2022, the fastest adoption rate of any country in Europe, according to a YouGov poll commissioned by BlackRock.
According to the 2024 People & Money Survey, 8% of UK investors now own ETFs, up from 6% when the exercise was last carried out in 2022.
Adoption was driven largely by young adults. Compared to the previous poll, 95% more 18 to 34-year-olds hold ETFs, comfortably exceeding the 27% rise among over 35s.
While the UK’s ETF adoption rate was the fastest in Europe, adoption still lags far behind many other markets.
40% of German investors hold ETFs – a total of 10.5 million people – followed by 29% in Switzerland and 26% in Austria. Of the 14 countries involved in the survey, only France – also with 8% – does not boast an adoption rate exceeding the UK’s.
Going forward, however, the laggards are expected top the growth charts, with ETF ownership expected to rise 110% in France and 78% in the UK over the next 12 months.
Of the new UK investors, over half are expected to be female and about two-thirds are expected to be under 35.
The growth in ETF investing has gone hand-in-hand with the rise of digital platforms, with 87% of UK investors accessing ETFs through online brokers, online platforms or robo advisers, slightly ahead of Europe at 75%.
