🇪🇺 𝐄𝐔 𝐅𝐮𝐧𝐝𝐬 𝐯𝐬. 🇺🇸 𝐔𝐒 𝐅𝐮𝐧𝐝𝐬: 𝐖𝐞 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐜𝐥𝐨𝐬𝐞 𝐭𝐡𝐞 𝐆𝐚𝐩! A new ESMA report (link in comments) gives valuable insights: ✅ US funds dominate global markets with 50% of net assets, while the EU holds 30%. ✅ Retail investors hold 88% of US funds, but only 65% in EU UCITS & 11.3% in AIFs. ✅ Fund size matters. US share classes average €810M, while EU funds are much smaller (€320M/fund). ✅ Lower Costs in the US: US equity funds avg. 0.44%, EU 1.40% US bond funds avg. 0.37%, EU 0.86% ✅ ETF dominance. Passive investing leads in the US, while EU ETFs are growing but still relatively small (16% of UCITS market). 𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧? 𝐔𝐒 𝐟𝐮𝐧𝐝𝐬 𝐚𝐫𝐞 𝐛𝐢𝐠𝐠𝐞𝐫 & 𝐜𝐡𝐞𝐚𝐩𝐞𝐫—𝐛𝐲 𝐚 𝐥𝐨𝐧𝐠 𝐬𝐡𝐨𝐭. The cheapest ETFs in the U.S. charge ~0.03% fees annually. Good luck finding those in the EU. Meanwhile, most EU pension systems are broken (no need to sugarcoat it). Private retirement savings through capital markets must be made easier, cheaper, and more accessible. Fast! What we need in my opinion: ✅ Larger funds & economies of scale → Support mergers, institutional participation & cross-border consolidation (EU capital markets union?) ✅ Educate & promote passive investing → Too many EU investors overpay for active funds sold by commission-driven bank advisors. ✅ Better distribution → Cut out the middleman. Encourage direct sales models like 401(k)-style retirement plans. ✅ Reduce regulatory burden → Simplify disclosure, distribution, and compliance costs. The gap is real and we need to close it, fast.