- Semi-transparent ETFs have been approved by Luxembourg’s financial regulator and the CBI is expected to follow suit.
- This could encourage more asset managers to launch their active strategies in Europe, now that they cannot be as easily copied.
- Assets in the European active ETF market grew 68% last year, and 11% in Q1 2025.
- HANetf has facilitated the launch of numerous active ETFs from asset managers via its white-label platform, and enquiries are rising.
Semi-transparent ETFs are coming to Europe.
In December 2024, Luxembourg’s financial regulator (the Commission de Surveillance du Secteur Financier) gave the green light for active ETFs to use a semi-transparent structure. Now, the Central Bank of Ireland (CBI) has followed suit, opting for an even more flexible structure.
This could be a gamechanger for active ETFs. Simply put, semi-transparent active ETFs do not need to reveal holdings on a daily basis – and can instead opt to publish them at least once a month instead, with a one-month delay.
For active managers, this can be an attractive proposition. It makes it far more difficult for their peers to copy them, allowing their investment strategy and decision-making to remain opaque, and therefore irreplicable.
For active managers in the U.S., the semi-transparent structure has been available for a while. Its arrival in Europe could convince some of these managers to enter the European market with their active ETFs, now safe in the knowledge that their strategies will not be as easily replicable.
The active ETF market is rapidly growing in Europe, seeing a 68% AUM increase across 2024, and an 11% increase in Q1 2025. It now stands at over $60 billion AUM, and that growth could only be the beginning.
HANetf has experienced an influx of enquiries about launching active ETFs from asset managers globally. Last year, there were over 600 total enquiries. Around 80% are now inquiries about launching active ETFs, up from around 1% in 2023.
In recent months, many global asset managers have launched active strategies in Europe via HANetf’s white-label platform – including Jupiter Asset Management, Amerant Asset Management, PT Asset Management, Westfield Capital Management, and YieldMax™ – with plenty more in the pipeline.
Approval of semi-transparent ETFs in Europe could convince even more to take the leap, and HANetf’s white-label service offers an opportunity to do so.
For asset managers entering a new market, there are challenges. Europe is a diverse market, with differing languages, regulations, and currencies. HANetf seeks to minimise these challenges.
HANetf is Europe’s first white-label ETF and ETC provider, partnering with asset managers to break down the barriers to the European ETP market. This can allow asset managers to bring new and innovative products to Europe, with reduced costs and time to market.
For U.S. asset managers – Europe is an appealing prospect. Not only is there demand for U.S. products to be brought to Europe, but Irish-domiciled UCITS ETFs have tax benefits that are often thought of as unique to U.S. funds.
While European mutual funds are typically subject to a 30% withholding tax (WHT) on US equity dividends, Irish-domiciled UCITS ETFs are only subject to 15% WHT. In essence, for every 1% yield on a US equity portfolio, 15 basis points are saved – so Irish-domiciled UCITS ETFs can help add “alpha” to investors’ portfolios.
HANetf can manage the complexities of building and launching an ETF or an ETC from the building stage all the way through to the maintenance, distribution and promotion stage. From start to finish, HANetf can launch an ETF or an ETC in 8-12 weeks.
So, for asset managers looking to capitalise on the growing active ETF market in Europe, HANetf has the solution.
To launch an ETF on HANetf’s white-label platform, get in touch now.
