What is driving the gap between investor intent & behaviour?
For professional investors only.
Amundi’s 2025 Decoding Digital report reveals a stark disconnect between ETF investor aspirations and their current investment choices. By understanding what is driving this gap, retail providers can offer more effective guidance, build stronger client relationships and ultimately help investors achieve their financial goals.
A striking 79% of individual or retail European investors in our sample would consider future investments in ETFs.
While this figure implies a proactive approach to investing, the reality paints a very different picture, with only 27% of individual European investors currently holding ETFs.
While cost considerations (27%), performance anxiety (22%) and perceived complexity (14%) are all frequently stated barriers to investing in ETFs, this does not fully explain why these same individual investors expect to invest significantly more in the future.
Looking beyond surface-level barriers to entry, retail providers can get a more nuanced view of the underlying motivations driving investment behaviour.
This means analysing underlying motivations, knowledge gaps, and life-stage considerations.
Top six barriers to investing
The Decoding Digital report reveals that long-term financial security is the primary motivation for individual ETF investors, with 49% prioritising a comfortable retirement. This is closely followed by 46% of respondents who are focused on maximising their earnings.The findings reveal that the drive for future financial stability surpasses other investment motivations. However, the disconnect between intentions and actions shows that ETF investors often underestimate the need for prudent financial choices now, believing their future selves will be more capable and financially secure. This "future-self bias" emphasises the vital role of financial education and planning in closing this gap.
Which of the following motivations are driving ETF investors to invest?
While ETF investors generally exhibit greater confidence in their investment decisions, compared to other individual investors, there is still a perceived shortcoming in their understanding of retirement planning.Analysis of the report data shows that 72% of ETF investors are confident that they are making the right investment decisions but only 32% of ETF investors feel assured about achieving their desired retirement income. Investors need access to resources and guidance to help them make more informed investment decisions and retail providers are ideally positioned to promote this.
ETF investors feel confident in their investment choices,but not in achieving their retirement goals
By leveraging online educational resources, retail providers can connect with a diverse group of investors early in the engagement process. 70% of investors today turn to digital sources of information such as social media or podcasts to inform their investment decisions.
However, with 40% of ETF investors seeking professional guidance to enhance their investment performance, direct interactions will remain a core part of the ETF investor experience. The research also shows that nearly half of ETF investors globally (46%) have at least some of their portfolio managed by a professional financial adviser or wealth manager and 51% of ETF investors prefer professional human engagement when developing a long-term financial plan. It is only by adopting a multi-channel support model that advisors will be able to bridge the gap between investor aspirations and actions.
The Decoding Digital report shows that despite the rise of digital investment tools, there remains a need for professional guidance.
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Unless stated otherwise, Amundi’s ‘Decoding Digital Investments: Embracing the New Digital Norm’ report is the source for all data cited in this article. The findings in this article are based on the views of 11,355 investors surveyed across 25 countries on four continents. We set quotas by both age and gender to ensure to have a sufficient and robust sample in order to confidently assess differences between demographic groups. Data for ‘Decoding Digital Investments: Embracing the New Digital Norm’ was collected between 15 November 2024 and 3 January 2025. This research was an independent study undertaken by H/Advisors Cicero. All data are given for illustrative purposes only and may change over time without prior notice.
Marketing document – For professional and qualified investors only
Knowing your risks
It is important for potential investors to evaluate the risks described below and in the fund’s Key Investor Information Document (“KIID”)
CAPITAL AT RISK - ETFs are tracking instruments. Their risk profile is similar to a direct investment in the underlying index. Investors’ capital is fully at risk and investors may not get back the amount originally invested.
UNDERLYING RISK - The underlying index of an ETF may be complex and volatile. For example, ETFs exposed to Emerging Markets carry a greater risk of potential loss than investment in Developed Markets as they are exposed to a wide range of unpredictable Emerging Market risks.
REPLICATION RISK - The fund’s objectives might not be reached due to unexpected events on the underlying markets which will impact the index calculation and the efficient fund replication.
COUNTERPARTY RISK - Investors are exposed to risks resulting from the use of an OTC swap (over-the-counter) or securities lending with the respective counterparty(-ies). Counterparty(-ies) are credit institution(s) whose name(s) can be found on the fund’s website amundietf.com. In line with the UCITS guidelines, the exposure to the counterparty cannot exceed 10% of the total assets of the fund.
CURRENCY RISK – An ETF may be exposed to currency risk if the ETF is denominated in a currency different to that of the underlying index securities it is tracking. This means that exchange rate fluctuations could have a negative or positive effect on returns.
LIQUIDITY RISK – There is a risk associated with the markets to which the ETF is exposed. The price and the value of investments are linked to the liquidity risk of the underlying index components. Investments can go up or down. In addition, on the secondary market liquidity is provided by registered market makers on the respective stock exchange where the ETF is listed. On exchange, liquidity may be limited as a result of a suspension in the underlying market represented by the underlying index tracked by the ETF; a failure in the systems of one of the relevant stock exchanges, or other market-maker systems; or an abnormal trading situation or event.
VOLATILITY RISK – The ETF is exposed to changes in the volatility patterns of the underlying index relevant markets. The ETF value can change rapidly and unpredictably, and potentially move in a large magnitude, up or down.
CONCENTRATION RISK – Thematic ETFs select stocks or bonds for their portfolio from the original benchmark index. Where selection rules are extensive, it can lead to a more concentrated portfolio where risk is spread over fewer stocks than the original benchmark.
Important information
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United Kingdom
Marketing Communication. For Professional Clients only. In the United Kingdom (the “UK”), this marketing communication is being issued by Amundi (UK) Limited (“Amundi UK”), 77 Coleman Street, London EC2R 5BJ, UK. Amundi UK is authorised and regulated by the Financial Conduct Authority (“FCA”) and entered on the FCA’s Financial Services Register under number 114503. This may be checked at https://register.fca.org.uk/ and further information of its authorisation is available on request. This marketing communication is approved by Amundi UK only for use with Professional Clients (as defined in the FCA’s Handbook of Rules and Guidance, the “FCA Rules”)) and shall not be distributed to the public, relied on or acted upon by any other persons for any purposes whatsoever. Past performance is not a guarantee or indication of future results.
Information reputed exact as of 15 April 2025.
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French “Société par Actions Simplifiée” - SAS with a share capital of €1 143 615 555. Portfolio management company approved by the French Financial Markets Authority (Autorité des Marchés Financiers) under no.GP 04000036. Head office: 91-93, boulevard Pasteur, 75015 Paris – France. Postal address: 91, boulevard Pasteur, CS 21564, 75730 Paris Cedex 15 – France. Tel: +33 (0)1 76 33 30 30. Siren no. 437 574 452 RCS Paris.
