Introducing Sabrina Principi, Head of Business Development for ETFs and Index solutions at BNP Paribas Asset Management
Daniel Gonzalez Fuster: Thank you for joining our fifth episode of “ETFs Unwrapped” a guide for asset manager COOS and operational leaders looking at launching ETFs in Europe.
I am Daniel Gonzalez Fuster, Head of ETF Solutions EMEA at BNP Paribas’ Securities Services business and I am really happy to be joined today by Sabrina Principi, Head of Business Development ETF & Index Solutions, at BNP Paribas Asset Management.
Today we will try to give asset management firms a practical view on how to launch or expand their ETF programmes in Europe.
Sabrina, thank you for joining. Could you share with us how you first got involved with ETFs?
Sabrina Principi: first of all, thank you very much for the invitation and for the opportunity to share BNP Paribas Asset Management’s expertise in ETFs.
Going back to your question: my journey with ETFs began several years ago, even before I joined BNP Paribas Asset Management.
At the time, I was working for one of the most prominent index providers. I had daily interactions with asset managers looking to launch ETFs on our benchmarks and needed information on methodology, replicability and liquidity on the underlying assets.
I then joined BNP Paribas in 2017 when the firm made a strategic decision to refocus on the ETF business. At that time we were managing less than €13 billion in ETF and Index assets. Today, we manage more than EUR 60 billion.
This growth reflects both a strong client demand and our long-term commitment to business.
We are very ambitious for the future. ETF represents one of our key 2030 initiatives with the objective of expanding our ETF offering and strengthening our position as a leading European ETF provider. Our goal is to gather 100 billion new assets by 2030.
ETF market trends in Europe
Daniel: Sabrina, you’re global Head of Business Development, so we’d love to hear your take. In 2026, what are the biggest trends shaping Europe’s ETF market?
Sabrina: I would mention three trends[i] in particular. ETFs are becoming one of the privileged investment vehicle of choice for all investors
Numbers speak for themselves, ETF inflows surged to €325 billion in Europe in 2025, and the first quarter of 2026 has been very strong with net inflows over 106 billion Euro[ii].
What stands out is the pace of acceleration: in Europe, it took nearly 20 years to reach the first trillion, and less than six years to grow from one to almost three.
I have been working in the financial market industry for quite some time, and I cannot recall any other investment solution that has achieved such a level of success.
Then, there is also another fundamental trend. Traditionally ETFs were the domain of professional investors. Now, more and more retail investors, platforms, and saving plans are taking part.
All types of investors are driving the market’s growth.
In Germany, for example, ETF savings plans have seen a notable rise in popularity among private investors in recent years. A recent survey[iii] found that 51% of adults were interested in such plans, with 18 to 34-year-olds accounting for two-thirds of that percentage.
Online platforms, robo-advisors, online brokers, and investment apps are driving growth. Many retail investors use digital platforms for research and to invest. They value the fact that platforms have made investing easier. Fees are often lower than those charged by traditional financial institutions. Their interfaces can facilitate search, selection, and purchases and these applications are available 24/7. Besides, these platforms often provide educational resources and market analysis to help investors make informed decisions.
Daniel: So we do see an impressive increase in demand for ETFs. What about the offer side?
Sabrina: Active ETFs will reshape the competitive landscape. The market for passive ETFs has become overcrowded, leading players to expand into active ETFs.
Active ETFs are run by a manager who actively selects securities and makes portfolio decisions to improve returns. As a result, they can outperform rather than match the market index and can adjust the portfolio to mitigate potential losses. This does come at a price: active ETFs are generally more expensive than passive ETFs, with higher management charges and operating costs.
I believe the 2025 success will continue.
Last year, over 130 new active ETFs were launched by a growing number of asset managers.
It is interesting to note that 9 Asset Managers entered the market in 2024 in Europe via the launch of active ETFs, 12 in 2025 and 3 so far this year[iv].
White label ETFs in Europe
Daniel: Sabrina, entering a new market for an asset manager is not an easy task. ETFs are vehicles with a very specific operational setup. How can they do?
Sabrina: this is the 3rd trend. We see also a new demand for white label ETFs.
White label ETFs are gaining traction, particularly in Discretionary Portfolio Management (DPM), but also among asset managers and financial institutions.
These ETFs are created and managed by a third-party provider, but branded and distributed by another company, typically a wealth manager or other financial institutions. The third-party provider manages, operates, and administers the ETF, while the distributor markets and sells the product.
By partnering with a third-party provider, distributors can avoid the costs of creating and managing their own ETFs, and focus on their core business. Tapping into the expertise and resources of a third-party provider can also enhance the overall quality of the ETF and provide distributors with a competitive edge in the market.
White-labelling allows for ETFs to be customized to meet the needs of the distributor and their clients.
They can easily adapt to changing market conditions and investor demands.
According to a recent surveyv, 40% of wealth managers and asset managers are considering launching their own white label ETFs in the next two years, driven by the desire for cost-efficient and tailored-made investment solutions.
Operational roadmap in European ETF ecosystem
Daniel: Let’s talk asset manager pain points. If an asset manager wants to build an ETF from scratch in Europe, what are the first operational milestones a COO needs to map out?
Sabrina: There is a common perception that ETFs are simple products to design, launch, and manage. However, the underlying product infrastructure is quite complex and sophisticated. It requires a wide range of expertise and operational capabilities.
First, it is important to stress that ETFs are exchange-traded products, with specific regulatory requirements and a dedicated operational setup.
It must comply with the standard obligations applicable to traditional mutual funds and must be listed on an exchange. ETFs fully rely on a dedicated ecosystem that includes exchanges, market makers, and Authorized Participants.
Managing an ETF is operationally demanding.
In particular, there are daily creation and redemption processes, liquidity management, and the high level of transparency required on portfolio holdings. As you know, the devil is in the details, and the ETF business involves many technical and operational nuances.
For these reasons, building ETF capabilities in-house, or deciding to outsource them fully or partially, is a strategic decision. It requires careful consideration.
End-to-end white-label ETF solutions for European Asset Managers
Daniel: you mentioned white label ETFs as a big trend in European markets. Can we deep dive on white-labelling? How can BNP Paribas Asset management concretely support European asset managers?
Sabrina: we support European asset managers partners throughout the entire lifecycle of a white label ETF project, from the initial feasibility assessment to launch and day-to-day operations.
The objective is to allow our partners to access the ETF market efficiently, while leveraging our industrial ETF platform and execution capabilities.
We work closely with the asset managers to translate an existing strategy—whether index based or active—into an ETF compatible structure.
We integrate their specific investment rules, constraints, or exclusion lists directly into our portfolio management and control framework. This ensures that the ETF faithfully reflects the client’s strategy while benefiting from our daily controls such as NAV[v] validation, tracking error monitoring, and risk management processes.
At BNP Paribas Asset Management, we can provide the full ETF operating model, including the setup for the production and dissemination of Portfolio Composition Files (PCFs) and iNAVs , and the coordination with exchanges, Authorized Participants and market makers
We work very well with our service partners, such as you the Securities Services business. Recently we worked together to support and collaborate with one of the leading pan-European banks. They decided to enter the ETF space and appointed us as delegated manager.
European ETF market forecasts
Daniel: thanks a lot for sharing these elements, which show how you can support new players entering into the ETF market.
Looking ahead, how do you picture this European ETF market in 2030?
Sabrina: forecasts for the European ETF market are very positive. We believe we are entering a phase of more radical transformation.
This shift will be driven by digitalization and increasing retail adoption. We believe that online platforms, robo-advisors, online brokers, and investment apps will drive the growth, with many retail investors using digital platforms for research and to invest, the wealth and retail segment in general will pilot the segment . The online platform business is highly competitive. I guess that platforms will play an increasingly important role in shaping the industry.
Regarding the products themselves we see a growing product sophistication, particularly with the expansion of active ETF strategies confirming the preference for ETF as the investment wrapper of choice.
In Europe specifically, active ETFs are still smaller than in the US, but adoption has accelerated and we expect to see a similar trend
Daniel: many thanks, Sabrina for your insights. So, what we’ve heard today is that the full story of ETFs is still being written. It’s obvious that the European ETF arena will look dramatically different in the next decade.
Let me thank also all our listeners; I hope you have enjoyed this fifth episode of ‘ETFs Unwrapped’!
[i] Top five trends in exchange-traded funds in Europe for 2026 – BNP Paribas Asset Management – Corporate English
[ii] LSEG reports equity ETFs dominated first quarter 2026 in Europe – ETF Express
[iii] ETF-Sparpläne in Kontinentaleuropa: Studie mit Prognose bis 2030; ExtraETF, November 2025
[iv] ETF Book
V Moving and shaking in Europe’s ETF white-label market, ETF Stream March 27th 2025
Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.
[v] Net Asset Value