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Belongings underneath administration for U.S. exchange-traded funds might greater than double to $25 trillion by the tip of this decade, Citigroup stated on Thursday, as buyers search the more and more well-liked asset class for low-cost, diversified publicity throughout markets.
As of March 2025, the U.S.-listed ETF trade’s whole property stood at about $10.4 trillion, in accordance with Citi.
The Wall Road brokerage had beforehand forecast the trade’s AUM to hit $19 trillion by 2030 and $29 trillion by 2035.
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Citi stated that as of March 2025, the U.S.-listed ETF trade’s whole property stood at about $10.4 trillion. (Michael Nagle/Bloomberg through Getty Photos)
It now expects greater than $40 trillion by 2035.
“Whereas these projections are extra optimistic than our prior estimates, it nonetheless suggests ETFs might be in a extra mature part of AUM progress as flows (natural) and efficiency (inorganic) drivers might be extra balanced than the earlier ten years,” Citi stated.
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A big chunk of the expansion might be pushed by energetic ETFs, investments into that are anticipated to outpace their passive friends, the brokerage stated.
| Ticker | Safety | Final | Change | Change % |
|---|---|---|---|---|
| C | CITIGROUP INC. | 124.92 | +1.43 | +1.16% |
Lively ETFs are among the many fastest-growing segments of the ETF market, attracting buyers with versatile methods and decrease prices. Many goal to outperform a benchmark or ship a selected funding final result, whereas passive ETFs search to trace an index and mirror its efficiency.
“Our base case expects Lively’s market share of ETF AUM to double in ten years as these merchandise acquire (a) higher share of trade flows,” Citi stated in a word on Thursday.
Different components supporting progress throughout the trade embody product innovation, simpler ETF launch regulation, adoption of extra refined methods, and demand for versatile, tax-efficient funding options, Citigroup stated.
THE ETF REPORT: NEWS & ANALYSIS
Merchants work on the ground of the New York Inventory Change (NYSE) on April 4, 2025, in New York Metropolis. (Spencer Platt/Getty Photos / Getty Photos)
ETFs monitoring U.S. equities have recorded greater than $75.8 billion in inflows to date this yr, constructing on greater than $1.1 trillion price of inflows seen within the final two years, in accordance with knowledge from LSEG Lipper.
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In the meantime, U.S.-domiciled ETFs have recorded greater than $435 billion price of inflows to date this yr, as per LSEG Lipper knowledge.
