10 key takeaways from the Trackinsight Global ETF Survey 2025

The ETF industry is undergoing a transformative shift, driven by the rise of active management, regulatory reforms, and evolving investor preferences. Below are the 10 most critical insights from the Trackinsight Global ETF Survey 2025 that help you navigate the ETF arena.

1. Active ETFs take main stage

Once a niche segment, active ETFs now dominate new launches, accounting for 60% of global ETF listings in early 2025, up from just 13% in 2019. Key drivers include:

• Outperformance potential (cited by most investors).
• Lower fees compared to traditional active mutual funds.
• Better transparency and liquidity.
• Regulatory tailwinds, such as SEC share class reforms in the U.S.

Regional highlights:

• U.S. leads with 46% of all ETFs now active.
• Canada has the highest penetration (55% of all ETFs).
• Europe is catching up, with active ETFs making up 7.2% of listings (up from 2.4% in 2019).

2. Fixed income ETFs are core portfolio holdings

Bond ETFs have evolved from tactical tools to strategic portfolio staples, with global AUM surpassing $2.6 trillion. Key trends:

• Active bond ETFs are surging (269 new launches in 2024 vs. 250 passive).
• Investors prioritize flexibility amid rate volatility, favoring:
  • Corporate/ government bonds.
  • Defined-maturity and short-duration strategies.
• U.S. dominates ($1.9T in assets), but Europe and APAC are growing fast.

3. Thematic ETFs shift from hype to long-term conviction

Thematic ETFs are maturing, with strong performers (AI, crypto, infrastructure) separating from fading trends (clean energy, cannabis).

• Global assets: $278B (U.S.) and $140B (Europe).
• Top 2024 performers:
  • Crypto ETFs (+61.6% in U.S., +106.5% in Europe).
  • AI & Big Data ($2B inflows).
• Investor behaviour:
  • 55% plan to increase thematic allocations.
  • Focus shifts from short-term trades to multi-year theses.

4. Crypto ETFs break into the mainstream

2025 is the year crypto ETFs went mainstream, fuelled by U.S. spot Bitcoin and Ether approvals:

• U.S. crypto ETF AUM: $108B (85% of global inflows).
• Beyond Bitcoin: XRP, Solana, and altcoin ETFs are launching.
• Europe remains a hub for diversity (170 products, 50+ cryptos).
• APAC is accelerating (Hong Kong retail access, Japan tax reforms).

Investor motivations:

• Long-term appreciation.
• Regulatory security vs. direct crypto ownership.

5. ESG ETFs adapt amid regulatory scrutiny

ESG ETFs face headwinds but continue growing, especially outside the U.S.:

• Europe leads ($500B AUM), with strict SFDR/CSRD rules curbing greenwashing.
• U.S. sees slower growth ($135B AUM) due to political backlash, but flows rebounded in 2024.
• Investor demand remains resilient, with focus on:
  • Transparent methodologies.
  • Regulatory alignment.

6. Regional ETF markets diverge

• U.S.: Dominates in active, crypto, and fixed income ETFs.
• Europe: Leads in ESG and thematic innovation.
• Canada: Highest active ETF penetration (55%).
• APAC: Fastest-growing region (30%+ annual growth), led by Hong Kong, Japan, and India.

7. Predictions from Industry Experts

80 bold forecasts for 2025, including:

• Active ETFs will capture 33% of global flows (J.P. Morgan).
• APAC to outpace U.S./Europe in growth (Tokyo Stock Exchange).
• Leveraged single-stock ETFs may implode (Bloomberg Intelligence).
• ETF Connect will boost cross-border demand (HKEX).

8. Innovation accelerates: From CLOs to daily payouts

• CLO ETFs gain traction for yield-seeking investors.
• Defined-outcome ETFs (e.g., buffered strategies) grow globally.
• Currency-hedged and daily distribution ETFs may debut.

9. Liquidity and trading dynamics evolve

• Intraday transparency becomes critical for ETF execution.
• Active ETFs introduce new secondary market behaviours.
• Options trading on ETFs impacts underlying liquidity.

10. The ETF industry’s future: More growth, more complexity

• Global ETF flows could hit $1.85 trillion in 2025.
• Active, crypto, and thematic ETFs will drive innovation.
• Challenges remain:
  • Performance concerns for active strategies.
  • Regulatory hurdles (e.g., ESG in U.S., crypto in APAC).

Conclusion: The ETF revolution continues

The 2025 ETF landscape is defined by:

1. The dominance of active management.
2. Fixed income and crypto as core assets.
3. Regional divergence in growth drivers.
4. Investor demand for precision, flexibility, and transparency.

As the industry evolves, ETFs are no longer just investment tools—they are reshaping global portfolio construction.

Final thought: The question is no longer if ETFs will grow, but how investors and regulators will adapt to their expanding role.

For full details, explore the Trackinsight Global ETF Survey 2025.