Active ETFs are booming. Private assets are going mainstream. And Europe’s call for an Investment and Savings Union is putting pressure on financial centres to deliver long-term solutions. In this shifting landscape, Luxembourg is not standing still.

In a special edition of the ALFI podcast, CEO Serge Weyland and Chairperson Jean-Marc Goy break down how Luxembourg is adapting fast, scrapping subscription taxes on ETFs, easing transparency rules, and scaling cross-border vehicles for both institutional and retail investors. Their message is clear: Luxembourg is ready to lead.

On ETFs, Luxembourg has a long track record. “We’ve been a pioneer since 2001,” said Goy. The country now ranks second in Europe, with €360 billion in ETF assets. New rules are making it even more attractive. “All Luxembourg ETFs, whether active or passive, are now exempt from the subscription tax,” he added.

The regulator has also adapted disclosure requirements for active ETFs, allowing monthly portfolio updates instead of real-time publication. “This gives Luxembourg a nice advantage over competing centres,” Goy noted. He also highlighted the ease of launching ETF share classes within existing funds as a draw for asset managers.

Private assets are another major growth area. “Luxembourg is now the leading domicile for private assets, with €2.6 trillion in alternative funds, two-thirds of our total assets under management,” said Weyland. While institutional capital still dominates, retail access is on the rise. “We’ve seen dedicated vehicles emerge for wealth management and family offices,” he explained, citing ELTIFs and Part II funds.

Zooming out, the broader policy context matters. ALFI recently published recommendations to support Europe’s Savings and Investments Union. “We’re at a turning point,” said Weyland. “Funded pensions in Europe are still underdeveloped—just 12% of GDP compared to much higher figures in the U.S. or Nordic countries.”

Weyland sees this as a key opportunity. “The asset management industry can provide solutions not just in public markets, but also in private equity, private debt and infrastructure.” Luxembourg, with its cross-border distribution expertise, is well placed. But, he warned, progress depends on reform: “We need EU-level action to scale up long-term savings products.”

Looking ahead, Goy acknowledged the uncertainty—from geopolitics to rapid shifts in distribution technology. But he remains optimistic. “The winners of tomorrow will be those who adapt quickly. ALFI will do its utmost to support growth in all areas: ESG, fintech, ETFs, private assets.