The European ETF/ETP market has broken a key milestone as its assets surpassed the trillion-dollar mark to end 2019 with $1.027trn, according to preliminary data from ETFGI.
This breakthrough comes just ahead of the industry's 20th anniversary on 11 April, marking two decades since the first ETFs were listed in Europe.
The LDRS DJ STOXX 50 and LDRS DJ EUROSTOXX 50 were listed by Merrill Lynch on 11 April 2000, with the iShares FTSE 100 ETF in close pursuit on 28 April 2000.
The LDRS ETFs were then acquired by Barclays Global Investors in September 2003 and renamed iShares DJ STOXX 50 and iShares DJ EUROSTOXXX 50.
Net inflows for the industry in 2019 totalled $125.3bn, with $20.4bn of those coming in December alone.
Fixed income beat equities to the top spot for inflows, taking $61.1bn and $51.7bn respectively, with commodity trailing in third with $8.7bn of inflows.
iShares took the largest portion of net inflows for the year by far, clocking up $59.8bn. UBS ETFs came second with $15.9bn and Invesco followed with $12.1bn.
Fannie Wurtz, head of ETF indexing and smart beta at Amundi, said: "Today, passively managed assets, including ETFs and index funds, represent around 20% of global AUM and we expect this percentage to keep on rising significantly in the coming years.
"The current challenging low rates market environment has also helped boost ETF adoption, with investors demanding access to cost efficient products offering a broad range of exposures responding to different investment needs.
"We have witnessed an increase in demand for ETF-based solutions from distributors for their end-clients and we expect this trend to continue.
"For asset managers, being able to understand the needs and constraints of these new ETF users will be crucial, together with providing education and tools to support distributors to enhance their offering."
Michael John Lytle, CEO of Tabula Investment Management, added: "I am not surprised by the continued strong growth of the ETF market.
"Our research with institutional investors suggests 2020 could be an even better year for fixed income ETFs - 88% expect flows into them to exceed those of 2019.
"There are several factors fuelling this growth, including more ETFs being listed, and greater innovation in the sector with new funds offering access to more parts of the fixed income market.
"I think there is also an element of ‘sector rebalancing' - ETFs are under-utilised within the fixed income sector, and more assets are being allocated to them because of this."
The figures come in a year where fixed income ETFs broke $1trn globally, as the product approaches its 18th birthday this year.
iShares ETFs broke the $2trn mark on the global stage, finishing the year with $2.2trn in assets under management.