Exchange Traded Fund Market Report 2025

The exchange traded fund market size has grown exponentially in recent years. It will grow from $19.34 billion in 2024 to $23.35 billion in 2025 at a compound annual growth rate (CAGR) of 20.7%. The growth in the historic period can be attributed to increasingly embracing passive investing, a rise in market liquidity, continuous trading activities, increasingly embracing passive investing, and trading associated with equity ETFs.

The exchange traded fund market size is expected to see exponential growth in the next few years. It will grow to $48.97 billion in 2029 at a compound annual growth rate (CAGR) of 20.3%. The growth in the forecast period can be attributed to the growth of bond ETFs, regulatory complexity hampers, instant exposure to a diversified portfolio, and an accelerated shift towards e-commerce and digital transformation. Major trends in the forecast period include new ETF launches, technological advancements, online trading platform enhancements, robo-advisors to trade ETFs, and increased reliance on digital technologies.

The forecast of 20.3% growth over the next five years reflects a modest reduction of 0.8% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through increased expense ratios, as index replication algorithms and basket trading systems, largely developed in Singapore and Japan, become more expensive to license, reducing fund efficiency. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growth of total asset management is expected to drive expansion in the exchange-traded fund (ETF) market. Asset management involves professionally managing investments on behalf of clients, driven by the complexity of assets, the need for effective risk management, and the pursuit of higher investment returns. ETFs support asset management by offering diversification, liquidity, cost efficiency, and enhanced portfolio and investment strategies. For example, as reported by the State Street Corporation in February 2024, the global ETF market achieved a milestone with $11.6 trillion in assets under management, marking a 15% increase from 2022. This growth was fueled by investors reallocating funds from cash to equities and bonds. Therefore, the rise in total asset management is a key driver of the expanding ETF market.

Leading companies in the ETF market are focusing on innovative offerings tailored to emerging market trends, such as electric vehicles (EVs) and new-age automotive sectors, to meet growing demand for sustainable investment options. ETFs focused on EVs aim to generate long-term capital appreciation by investing in companies leading the transformation of the automotive industry and its associated value chain. For instance, in June 2024, Mirae Asset Financial Group introduced India's first ETF dedicated to electric vehicles and new-age automotive segments, named the Mirae Asset Nifty EV and New Age Automotive ETF. This open-ended scheme tracks the Nifty EV and New Age Automotive Total Return Index, catering to investor interest in sustainable and forward-looking investment opportunities.

In January 2024, Amplify ETFs, a US-based investment company, acquired ETF assets from ETF Managers Group (ETFMG) for an undisclosed sum. This acquisition is expected to substantially expand Amplify's range of investor solutions and product offerings within its ETF segment portfolio. ETF Managers Group (ETFMG), also based in the US, specializes in providing exchange-traded funds tailored for investors.

Major companies operating in the exchange traded fund market are JPMorgan Chase & Co., Bank of America, Wells Fargo & Company, BNP Paribas SA, Morgan Stanley, The Goldman Sachs Group Inc., UBS Group AG, Barclays PLC, FMR LLC, Hartford Funds, The Charles Schwab Corp., BlackRock Inc., State Street Corporation, The Vanguard Group Inc., Blackstone Inc., T. Rowe Price, Invesco Ltd., Morningstar Inc., Abrdn plc, BMO Global Asset Management, Virtus Investment Partners, VictoryShares (Victory Capital), WisdomTree Inc., Tata Mutual Fund, Van Eck Associates Corp.

North America was the largest region in the exchange traded fund market in 2024. The regions covered in the exchange traded fund market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the exchange traded fund market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The exchange-traded fund market includes revenues earned by entities through management fees, administrative costs, custodian fees, and legal fees. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.

An exchange-traded fund (ETF) operates similarly to stocks on stock exchanges, offering investors exposure to a diversified portfolio of assets intended to mirror the performance of a specific index, commodity, bond, or group of assets. ETFs come in various styles, passive ETFs closely track specific indices, active ETFs involve active management strategies, and smart beta ETFs utilize alternative index-weighting methods.

ETFs span different asset classes including equity, fixed-income, commodity, currency, real estate, and hybrid funds. These cater to diverse investor types through various distribution channels, serving both individual and institutional investors across retail and institutional sectors.

The exchange-traded funds market research report is one of a series of new reports that provides exchange-traded funds market statistics, including exchange-traded funds industry global market size, regional shares, competitors with a exchange-traded funds market share, detailed exchange-traded funds market segments, market trends and opportunities, and any further data you may need to thrive in the exchange-traded funds industry. This exchange-traded funds market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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