The average compensation for European exchange-traded fund professionals has surged to $340,000, driven by intense competition for talent as asset managers expand their passive investing businesses, according to recruitment data from Dartmouth Partners.
Pay Bump Reflects Talent Scarcity
The figure, which includes base salary and bonus, represents a significant increase from previous years, with some senior ETF specialists commanding total packages exceeding $500,000. The scramble for experienced staff has intensified as traditional asset managers and newer entrants alike race to build or bolster their ETF capabilities.
“The demand for ETF talent has never been higher,” said James Coney, a partner at Dartmouth Partners. “Firms are willing to pay a premium for individuals who can navigate the complexities of product development, capital markets, and distribution in this rapidly growing space.”
Growth in Passive Investing Fuels Hiring
European ETF assets under management have grown substantially, reaching over $1.5 trillion in 2023, up from roughly $1 trillion in 2020. This growth has created a need for specialists in areas such as portfolio management, trading, legal, and sales. The talent pool, however, remains relatively small, putting upward pressure on pay.
According to the data, ETF professionals with five to eight years of experience saw the largest percentage increases, with average pay rising 15-20% year-on-year. Junior roles also benefited, with starting salaries for analysts climbing to around $100,000.
Regional and Role Variations
Pay levels vary across Europe, with London remaining the highest-paying hub due to its concentration of asset managers and ETF issuers. Zurich and Frankfurt also command premium compensation, though slightly below London levels. In contrast, roles in Southern and Eastern Europe typically pay 20-30% less.
By function, senior sales and distribution professionals are among the highest paid, reflecting the importance of gathering assets in a crowded market. Product development and capital markets roles also command strong compensation, while compliance and legal positions have seen more modest increases.
Outlook for Continued Pay Growth
Recruiters expect compensation levels to remain elevated as the ETF industry continues to expand. New entrants, including private equity-backed firms and fintechs, are adding to the demand for talent. Additionally, the rise of active ETFs and thematic investing is creating new specialist roles.
“We’re seeing firms hire not just for today but for future growth,” said Coney. “The war for talent shows no signs of abating, and we expect pay to remain competitive for the foreseeable future.”
