The global ETF industry reached a new record volume of 12.3 trillion dollars in February, according to the analysis firm ETFGI. Net inflows in the first two months of this year also set a new record of 253 billion dollars, with equity ETFs in particular demand. In Europe, inflows into ETFs were also high at the start of the year, with listed index funds reaching a record volume of 1.9 trillion dollars.

Of course, the high price gains on the stock markets in the first two months of this year contributed to the record levels. But inflows into ETFs are still very high. The reason for this is that the stock markets are running hot and are marking one record peak after another. And the easiest and most cost-effective way to benefit from the boom with a broadly diversified investment is to invest in equity ETFs. True to the motto „When it's raining porridge, you need to have a spoon.“ This is why products based on indices such as the Nasdaq 100, the S&P 500, the MSCI World or the Dax are so popular. Anyone who buys an ETF is involved and does not take any active risk that a fund manager will not be successful in selecting the right stocks. In rising markets, only a few active funds manage to beat ETFs, which have a cost advantage as well. As a result, more and more investors, including many institutional investors, are saying: „I'd rather buy an ETF.“

So far, so good. But how long will this strong demand for ETFs last? There are two different developments. One is the long-term above-average growth of low-cost passive products. This trend is likely to continue and ETFs will gain market share, especially in Europe, where they are not yet as significant as in the USA. The other is the special boom for ETFs as a result of the equity boom. This will of course subside when the markets stop moving upwards. But they are still going strong.