German ETF investment volume up 87 per cent since 2018
ETF investment volume in Germany has climbed from EUR20.9 billion to EUR39.1 billion over the last two years, an increase of 87 per cent, as can be seen a new infographic from Kryptoszene.de.
According to the survey, global ETF capital could double to USD12 trillion US by 2023.
As the infographic shows, the trend towards ETFs is reflected in several indicators. On the one hand, more and more investors are turning to ETF savings plans: there are today around 1.8 million of these in Germany alone, compared to just 175,979 In 2014. On the other hand, Germans are not only more reliant on savings plans, but are also investing more money. Currently, the average ETF savings plan rate is EUR174.50. Just two years ago, it was EUR144.90.
Meanwhile, the pandemic appears to be fuelling the existing upward trend even further. Since the corona crisis, 34 per cent of Germans report being increasingly interested in the topic of financial investments.
Blackrock is the world's largest ETF provider, accounting for over a third of the market share of all relevant providers. They in turn seem to be benefiting from the ETF hype, which is manifesting itself in rising stock prices and increased interest in Blackrock shares: at no point in the last five years have more German citizens searched on Google for "Blackrock shares" and "buy ETF" than in the crisis year 2020.
"A major growth driver for ETFs is the issue of private pension plans," says Kryptoszene analyst Raphael Lulay. "Broad diversification enables a comparatively high level of certainty in planning, whereas investments in individual securities carry significantly higher risks."