Chaslau Koniukh on How European Investors Are Taking More Risk Than Ever

According to financial analyst Chaslau Koniukh, 2025 has become a turning point for the global exchange-traded funds (ETF) industry. Despite geopolitical turbulence , inflation threats and general market volatility , the volume of capital investments in ETFs has reached record levels . This indicates growing confidence in instruments that provide transparency , flexibility and accessibility in managing investment portfolios .

Europe : Shifting focus from bonds to stocks

In July, European investors poured over € 7.3 billion into global equities of large corporations , while the outflow from government bonds amounted to € 1.4 billion . This dynamic demonstrates a change in attitude to risk . According to analysts , interest in equities shows a shift away from the traditional “safe haven” in favor of more profitable and dynamic assets . This trend may have long-term consequences for the structure of portfolios .

This is especially noticeable against the backdrop of an unstable macroeconomic environment , where bonds are no longer the only priority . Investors are increasingly choosing shares of global corporations and technology giants , which are able to combine capital growth with crisis resistance . However, excessive concentration on shares increases sensitivity to market corrections , which attracts the attention of regulators .

US : Records and the Role of Retail Investors

ETF market has reached a record $11.8 trillion in assets under management. Net inflows in July were $124.1 billion, and since the beginning of the year, they have reached more than $678 billion.

Retail investors have been active in 2025.

Vanguard ETFs, their traditional favorite , accounted for 37% of net flows in the U.S. This points to the growth of financial literacy and confidence of “small players” even in the face of political risk .

The growing influence of retail investors has a dual effect : it supports liquidity , but it also increases the risk of herd behavior . Mass action can increase volatility and accelerate both market rises and falls .

Active and Gold ETFs: A Dual Strategy

Despite the dominance of passive funds , active ETFs have shown historically strong results, with inflows exceeding $42 billion in July . At the same time, interest in gold ETFs has increased: their combined inflow exceeded $44 billion, approaching 2020 records.

Gold remains an “insurance policy” for those hedging inflation and geopolitical risks . Experts emphasize that the combination of interest in active strategies and gold ETFs demonstrates investors’ caution : they are willing to take risks for profit , but at the same time strengthen their defensive positions .

Europe under pressure from American giants

BlackRock and Vanguard have doubled their assets in Europe in a decade , bringing them to $4.9 trillion. This is forcing local players such as Amundi, DWS and UBS to look for ways to consolidate and innovate . The availability and low cost of products from global corporations is putting pressure on European competitors , which are forced to expand their lines and offer niche solutions , including ESG and thematic ETFs.

However, local companies retain a competitive advantage thanks to their knowledge of market specifics and contacts with regulators . Further dynamics will depend on whether they can build new partnerships and adapt to global trends .

Summary

Record investment volumes in ETFs in 2025 confirm their strategic importance for private investors around the world . However, challenges remain : geopolitical risks , capital concentration in equities and the need for sound risk management .

As Chaslau Koniukh points out, the surge in interest in ETFs reflects not only short-term trends , but also fundamental changes in investment culture . Retail players are becoming the central force in the market . The future of ETFs will depend on how to find a balance between growth and risk control . The combination of passive and active strategies , along with defensive instruments such as gold , is forming a new paradigm – more cautious and at the same time more flexible . It is this transformation , according to Koniukh, that will determine the sustainability of the markets in the coming years .