ETF net inflows reached an all-time high in 2025 at $372 billion, up 32% from 2024’s record-setting year. Today, more than $3.2 trillion is invested in ETFs*. “When looking at the ETF market, the superlatives never end”, says Neil Davies, Head of ETF Product and Capital Markets, Europe and APAC at Fidelity International. “There are three fundamental reasons behind the success of ETFs: cost efficiency, easy market access, and regulatory security. If these three drivers remain, ETFs will continue to dominate”, Davies comments.
ETF growth has been remarkably balanced across asset classes and regions. Since 2013, the ratio of inflows into equities versus bonds has remained stable at about 70% to 20%, with the remaining 10 spread across commodity, crypto, or multi-asset ETFs. Regional distribution shows a similar pattern. In equities, approximately 40% of new money flows into the US, 30% into globally diversified products, 20% into Europe, and 7% into emerging markets.
“The market volume keeps rising, but new inflows remain proportional. This stands out considering US equities have consistently led the market”, Davies comments. “ETF inflows are primarily driven by long-term allocation models, rather than short-term performance. New money doesn’t necessarily change portfolio weighting because allocations are made proportionally”, Davies explains. This reflects the fundamental nature of the ETF market, where most products are weighted by market capitalisation.
Overview of Net Inflows and Outflows UCITS ETFs (in million USD)
Active ETFs are no longer a niche phenomenon
Following the broader ETF market growth, active ETFs also reached record levels in 2025 with net inflows of over $31 billion. Investors allocated around two-thirds more into active ETFs than last year, meaning 8.5% of total new inflows went into active ETFs, up from 6.3% in 2024 and 3.9% in 2023. “These figures highlight the strong momentum in active ETF growth, with growth increasing every year and clients bringing together the traditional benefits of the ETF wrapper with alpha generation. Active ETFs are no longer a niche phenomenon”, concludes Davies.
