The global index fund market is experiencing robust growth, driven by increasing investor awareness of passive investment strategies and the pursuit of diversified, cost-effective portfolios. The market's appeal stems from its simplicity – mirroring a specific market index, eliminating the need for active management and potentially reducing fees. This makes index funds particularly attractive to long-term investors and those seeking efficient market exposure. While precise figures are unavailable, considering a global market size of approximately $10 trillion USD in 2025 with a Compound Annual Growth Rate (CAGR) of 12% is a reasonable estimation based on recent market performance and industry reports. This growth is fueled by factors like the rising adoption of Exchange-Traded Funds (ETFs), a prevalent form of index fund, and the ongoing shift towards passive investing globally. The continued expansion of the global financial market, along with advancements in technology facilitating easy access to investment platforms, contributes significantly to this growth trajectory. Several key players dominate the market, including prominent international players like Vanguard, BlackRock, and Fidelity, alongside significant domestic Chinese firms such as Tianhong Fund, E Fund, and China Asset Management. However, competitive pressures are increasing, with new entrants and existing players constantly innovating to offer unique product features and cater to evolving investor preferences. Regulatory changes impacting investment strategies and market volatility represent potential restraints. Nevertheless, the long-term outlook for the index fund market remains positive, primarily driven by demographic shifts, increasing investor sophistication, and the inherent advantages of passive investing in a globally interconnected economy. The continued expansion of both developed and emerging markets will further fuel the market's growth over the forecast period of 2025-2033.

Broad Based Index Fund Market Outlook

The global broad-based index fund market size was valued at USD 5.3 trillion in 2023 and is projected to reach USD 11.2 trillion by 2032, growing at a compound annual growth rate (CAGR) of 8.5% during the forecast period. This substantial growth is driven by increasing investor interest in passive investment strategies, along with the rising emphasis on cost-effective and diversified portfolio management.

The surge in demand for broad-based index funds can be attributed to several key growth factors. Firstly, the growing awareness and education about the benefits of passive investing over active management have played a significant role. Investors are increasingly leaning towards index funds due to their lower expense ratios, tax efficiency, and the ability to provide broad market exposure with minimal effort. Secondly, technological advancements and the rise of fintech have made these funds more accessible to a wider audience through online platforms and robo-advisors, democratizing investment opportunities for retail investors globally. Lastly, regulatory changes in many regions are encouraging greater transparency and lower fees in the financial services industry, which further bolsters the attractiveness of index funds as a preferred investment vehicle.

The popularity of broad-based index funds is also bolstered by their performance resilience during market volatility. Historical data indicates that while actively managed funds often struggle to outperform the market consistently, index funds tend to provide more stable returns over the long term. This trend has been particularly noticeable during economic downturns and periods of market uncertainty, where investors seek the relative safety and predictability offered by broad-based diversified portfolios. Additionally, the increased focus on retirement planning and the shift from defined benefit to defined contribution retirement plans have spurred the growth of index funds as they are often the preferred choice in retirement accounts due to their long-term growth potential and lower costs.

The regional outlook for the broad-based index fund market highlights significant growth potential across various geographies. North America, particularly the United States, remains the largest market for index funds, driven by the deep-rooted culture of investing and a well-established financial infrastructure. Europe follows closely, with growth fueled by regulatory support and increasing investor awareness. The Asia Pacific region is expected to witness the highest growth rate, propelled by the burgeoning middle class, rising disposable incomes, and increasing penetration of financial services. Latin America and the Middle East & Africa are also anticipated to demonstrate steady growth as financial markets in these regions continue to develop and mature.

Mutual Funds Sales have seen a notable uptick as investors increasingly seek diversified investment options that align with their financial goals. This trend is particularly evident in the context of broad-based index funds, where mutual funds offer a structured approach to investing in a wide array of assets. The appeal of mutual funds lies in their ability to pool resources from multiple investors, enabling access to a diversified portfolio that might otherwise be unattainable for individual investors. This collective investment model not only reduces risk but also provides investors with professional management and oversight. As the financial landscape evolves, mutual funds continue to play a crucial role in facilitating access to index funds, thereby driving sales and expanding their market presence.

Fund Type Analysis

Equity index funds represent a significant portion of the broad-based index fund market. These funds track a variety of stock indices, such as the S&P 500, NASDAQ, and MSCI World Index, providing investors with exposure to a wide array of equity markets. The appeal of equity index funds lies in their ability to offer broad market diversification at a low cost. Investors benefit from the lower fees associated with passive management and the reduced risk of individual stock selection. As a result, equity index funds have become a staple in both retail and institutional portfolios, driving robust demand and growth in this segment.

Bond index funds, though smaller in market share compared to their equity counterparts, are gaining traction as investors seek stable income and risk diversifi

The global broad-based index fund market is experiencing robust growth, driven by increasing investor preference for passive investment strategies and the simplicity of index funds. The market's size, while not explicitly stated, can be reasonably estimated based on the presence of numerous large global players like Vanguard, BlackRock, and Fidelity, coupled with the substantial market penetration of index funds in developed markets. Assuming a global market size of approximately $5 trillion in 2025 (a conservative estimate given the scale of these players and the overall asset under management in index funds globally), and a CAGR (Compound Annual Growth Rate) of, say, 8% (a figure reflecting recent market trends and sustainable growth), the market is projected to reach significant proportions by 2033. Key drivers include the lower expense ratios compared to actively managed funds, the diversification benefits offered by broad-based indexes, and the increasing accessibility of these funds through online brokerage platforms. The rising popularity of exchange-traded funds (ETFs), which often track broad-based indexes, further fuels this growth. Despite the positive outlook, certain restraints exist. Market volatility, particularly during economic downturns, can impact investor sentiment. Regulatory changes and increased competition among fund providers also present challenges. Furthermore, educational efforts are crucial to address potential investor misconceptions regarding passive versus active investment strategies. Market segmentation will see growth in both geographic regions (with developing markets representing a considerable opportunity) and specific index types (e.g., sector-specific index funds). Leading players like Vanguard, BlackRock, and Fidelity are expected to maintain their dominance due to their brand recognition, established infrastructure, and economies of scale. However, increased competition from regional and niche players is likely, particularly in rapidly growing markets such as Asia.

The global ETF Index Fund market is experiencing robust growth, driven by increasing investor preference for diversified, low-cost investment vehicles. The market's appeal stems from its accessibility, transparency, and potential for significant returns, particularly in volatile market conditions. While precise market sizing requires specific data, considering a conservative CAGR of 10% (a common rate for established investment products) and a 2025 market value of $5 trillion (a reasonable estimate based on the significant presence of major players like BlackRock and Vanguard and the overall size of the investment management industry), we can project substantial expansion over the forecast period (2025-2033). Key drivers include the rising popularity of passive investment strategies, technological advancements improving trading efficiency, and the growing sophistication of retail and institutional investors. The segmentation by application (Investment & Financial Management, Risk Hedging, Others) and fund type (S&P 500, Nasdaq 100, Others) reflects the market’s diverse offerings and caters to a broad spectrum of investor needs and risk tolerances. Growth may be somewhat constrained by regulatory changes, macroeconomic uncertainty, and competition from other investment products. However, the long-term outlook remains positive, with substantial opportunities for expansion in emerging markets and through innovative product development. Geographic distribution shows significant concentration in North America and Europe, reflecting the maturity of these markets. However, rapid growth is expected in Asia-Pacific, particularly in China and India, as these regions experience increasing wealth creation and investor participation in the financial markets. The presence of major Chinese players like Guotai-Junan, GF Securities, Eastmoney, ChinaAMC, Hua An Fund, and Dacheng Fund highlights the escalating importance of this region. Competitive intensity is high, with established global giants like BlackRock, Vanguard, and State Street Global Advisors vying for market share alongside regional players. Future growth will depend on factors like the successful integration of innovative technologies, the development of niche index funds catering to specific market segments (e.g., sustainable investing, thematic ETFs), and the ability of companies to adapt to evolving regulatory landscapes.

A list of the top 50 Index Fund Advisors Inc holdings showing which stocks are owned by Index Fund Advisors Inc's hedge fund.

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According to Cognitive Market Research, the global index fund market size will be USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031. North America held the major market share for more than 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031. Europe accounted for a market share of over 30% of the global revenue with a market size of USD XX million. Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031. Latin America had a market share of more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031. Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031. The insurance fund held the highest index fund market revenue share in 2024. Market Dynamics of Index Fund Market Key Drivers for Index Fund Market Increased Awareness and Education About Investing to Increase the Demand Globally Increased awareness and education about investing have driven the growth of the index fund market. As people become more informed about financial principles, they realize the advantages of index funds, including low expenses, diversification, and transparency. Understanding the advantages of passive investing over operational management fosters confidence in index funds as dedicated vehicles for long-term wealth accumulation. This heightened attention drives greater participation in the market, shaping it into a key element of many investors' portfolios and contributing to its ongoing expansion. Changes in Regulatory Policies, Such As Tax Laws Or Securities Regulations to Propel Market Growth Changes in regulatory policies, like alterations in tax laws or securities regulations, can profoundly impact the index fund market. Shifts in tax codes may affect investors' after-tax returns, influencing their investment decisions. Similarly, changes in securities regulations can influence the structure and function of index funds, potentially limiting their attractiveness or compliance needs. Such changes can lead to changes in investor behavior, fund implementation, and market dynamics, highlighting the interconnectedness between regulatory conditions and the index fund market's strength and development trajectory?. Restraint Factor for the Index Fund Market Changes in Financial Regulations to Limit the Sales Changes in financial regulations can significantly impact the index fund market. Stricter regulatory requirements may improve compliance expenses for fund managers, potentially directing investors to higher fees. Additionally, regulations that restrict certain types of investments or mandate more comprehensive reporting can decrease the flexibility and attractiveness of index funds. Conversely, regulations encouraging transparency and investor protection can increase confidence and participation in the market. Impact of Covid-19 on the Index Fund Market The COVID-19 pandemic significantly impacted the index fund market, initially causing volatility and sharp drops. However, it also revved a shift towards passive investing due to market anticipation and the search for stability. Investors flocked to index funds for their low expenses, diversification, and constant performance. The subsequent market recovery, fueled by monetary and fiscal stimulation, further expanded index fund assets. Overall, the pandemic highlighted the resilience of index funds and solidified their attraction as a core investment strategy during times of economic uncertainty. Introduction of the Index Fund Market An index fund is a type of mutual fund or ETF designed to replicate the performance of a specific financial market index, delivering low costs, broad diversification, and passive investment management. Growing disposable incomes in developing regions significantly boost the index fund market. As individuals in these areas gain more financial stability, they seek investment opportunities to increase their wealth. Index funds, with their low expenses, diversification, and comfort of access, become attractive options for t...

As of June 2024, the Vanguard Mega Cap Growth Index provided the highest one-year return rate. The Vanguard Russell 1000 Growth Index Fund ranked second having a one-year return rate of 36.3 percent. As of June 2024, the Vanguard Total Stock Market Index Fund was the largest fund owned by Vanguard, with net assets under management worth approximately 1.55 trillion U.S. dollars. What is the difference between mutual funds and exchange traded funds? Both mutual funds and exchange traded funds (ETFs) originate from the concept of pooled fund investing, which bundles securities together to offer investors a more diversified portfolio. However, mutual funds and ETFs have some key differences. For instance, ETFs offer more flexible trading as they trade during the day like stocks, while mutual funds only allow transactions at the end of the day. Moreover, ETFs are mostly passively-managed and mirror a designated index. On the other hand, mutual funds are typically actively-managed, as it can be seen by comparing the number of actively and passively-managed mutual funds in the United States. Vanguard Founded by John C. Bogle in 1975, Vanguard is a U.S. asset management company that offers both mutual funds and ETFs. Headquartered in Malvern, Pennsylvania, Vanguard was the second largest provider of ETFs in the United States after BlackRock Financial Management, with assets under management worth almost 2.2 trillion U.S. dollars. Likewise, in 2024, Vanguard ranked among the largest providers of mutual funds worldwide. The total assets under management of Vanguard increased considerably since its foundation in 1975, and peaked at 8.6 trillion U.S. dollars in 2024.

Market Size & Growth: The global Broad-Based Index Fund market is estimated to reach a value of XXX million USD by 2033, exhibiting a robust CAGR of XX% during the forecast period (2025-2033). Strong demand for low-cost, diversified investment options, coupled with growing investor awareness and favorable regulatory initiatives in various regions, is driving market growth. Key Trends & Drivers: The rise of passive investing strategies, which leverage index funds to track market benchmarks, is a key industry trend. Enhanced index funds, which incorporate active management techniques into index-tracking strategies, are also gaining traction. Technological advancements in data analysis and portfolio optimization tools are further empowering the growth of Broad-Based Index Funds. Additionally, increasing institutional investor participation in pension funds, insurance funds, and endowment funds is bolstering demand for these low-risk, long-term investment vehicles.

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Passive ETF Market Outlook

In 2023, the global Passive ETF market size was valued at approximately USD 6.1 trillion and is projected to reach USD 11.4 trillion by 2032, growing at a CAGR of 7.2% over the forecast period. The primary growth factor for this market is the increasing preference for low-cost investment options among retail and institutional investors alike.

One of the significant growth factors driving the Passive ETF market is the rise in awareness and education about financial markets among retail investors. More individuals are becoming informed about the benefits of diversified, low-cost investment portfolios. Passive ETFs, which typically track a specific index, offer a cost-effective way for investors to gain broad market exposure without the need for intensive management. This factor is particularly appealing to new investors who wish to participate in the stock market with minimal fees and reduced risk.

Another critical driver is the surge in technological advancements and digitalization in financial services. Online trading platforms and robo-advisors are making it easier for investors to access a wide array of ETF products. These platforms often provide tools and resources that help investors make informed decisions, thereby encouraging more people to invest in Passive ETFs. The ease of use, coupled with low transaction costs, has further popularized Passive ETFs among various investor segments.

Institutional investors are also increasingly turning to Passive ETFs to optimize their investment strategies. With market volatility and economic uncertainties, institutional investors seek stable and predictable investment solutions. Passive ETFs offer a reliable way to achieve market returns without the need to actively manage individual securities. This stability is particularly important for pension funds, endowments, and insurance companies, which have long-term investment horizons and fiduciary responsibilities to their beneficiaries.

Regionally, North America continues to dominate the Passive ETF market, owing to its mature financial markets and large base of institutional and retail investors. However, other regions like Asia Pacific are catching up rapidly. The growing middle class, rising disposable incomes, and increasing financial literacy are significant factors contributing to the market's growth in this region. Additionally, favorable regulatory changes and the introduction of innovative financial products are expected to drive the market further in Asia Pacific.

Type Analysis

In the Passive ETF market, various types, including Equity ETFs, Bond ETFs, Commodity ETFs, Real Estate ETFs, and others, offer diverse investment opportunities. Equity ETFs hold the largest market share, primarily due to their ability to provide broad exposure to stock markets, mirroring the performance of major indices like the S&P 500 or the NASDAQ. As investors seek to capitalize on market growth while minimizing costs, the demand for Equity ETFs continues to rise. They are particularly popular among retail investors looking to gain diversified exposure to the equity market without picking individual stocks.

Bond ETFs are another critical segment within the Passive ETF market, offering investors a way to gain exposure to the fixed income market. These ETFs are essential for those looking to balance their portfolios with more stable, income-generating investments. Bond ETFs can provide access to government, corporate, and municipal bonds. The predictable income stream and lower risk compared to equities make Bond ETFs a favorite among conservative investors and retirees. Additionally, in a low-interest-rate environment, Bond ETFs become even more attractive as they offer better returns compared to traditional savings accounts.

Commodity ETFs cater to investors looking to diversify their portfolios with tangible assets like gold, silver, oil, and other commodities. These ETFs provide a convenient way to invest in commodities without the complexities involved in holding physical assets. Commodity ETFs are particularly popular during times of economic uncertainty and inflation, as they often serve as a hedge against market volatility and currency devaluation. The demand for these ETFs is expected to grow as investors seek more avenues to protect their wealth.

Real Estate ETFs provide exposure to the real estate market by investing in a diversified portfolio of real estate investment trusts (REITs). These ETFs offer a way to participate in the real estate market without th

Commodity Index Funds Market Outlook

The global commodity index funds market size was valued at approximately $200 billion in 2023 and is projected to reach nearly $400 billion by 2032, growing at a robust CAGR of 7.5% during the forecast period. The significant growth in this market can be attributed to the increasing demand for diversification in investment portfolios and the inherent benefits of hedging against inflation that commodity investments provide. Furthermore, the volatility in global stock markets and geopolitical uncertainties have led investors to seek safer, more stable investment avenues, thus driving the growth of commodity index funds.

One of the primary growth factors propelling the commodity index funds market is the rising awareness among investors about the advantages of commodity investments as a hedge against inflation. Commodities, unlike stocks and bonds, often move inversely to the stock market, providing a cushion during market downturns. This characteristic makes commodity index funds an attractive option for risk-averse investors and those looking to balance their portfolios. Additionally, the globalization of trade and the increasing demand for raw materials in emerging markets have further spurred the demand for commodity investments.

Technological advancements in trading platforms have also significantly contributed to the growth of this market. The advent of sophisticated online platforms has made it easier for retail investors to access and invest in commodity index funds. These platforms offer a range of tools and resources that help investors make informed decisions, thereby democratizing access to commodity investments. Moreover, the rise of robo-advisors and algorithm-based trading strategies has further simplified the investment process, attracting a new generation of tech-savvy investors.

The regulatory landscape has also played a crucial role in shaping the commodity index funds market. Governments and financial regulatory bodies across the globe have been working to create a transparent and secure trading environment. Regulatory reforms aimed at reducing market manipulation and increasing transparency have instilled confidence among investors, thereby boosting the market. Additionally, tax incentives and favorable policies for commodity investments in various countries have also contributed to market growth.

In terms of regional outlook, North America holds a significant share of the global commodity index funds market, followed by Europe and Asia Pacific. The presence of well-established financial markets and a high level of investor awareness in North America are key factors driving the market in this region. Europe, with its strong regulatory framework and increasing adoption of alternative investment strategies, is also witnessing substantial growth. Meanwhile, the Asia Pacific region is emerging as a lucrative market, driven by the rapid economic growth in countries like China and India, and the increasing interest in commodity investments among institutional and retail investors.

Fund Type Analysis

When analyzing the market by fund type, Broad Commodity Index Funds dominate the landscape. These funds invest in a diversified portfolio of commodities, making them a popular choice for investors seeking broad exposure to the commodity markets. The broad commodity index funds are designed to track the performance of a basket of commodities, ranging from energy products to metals and agricultural goods. This diversification helps mitigate risks associated with the volatility of individual commodities, thereby providing a more stable investment option for risk-averse investors.

Single Commodity Index Funds, on the other hand, focus on specific commodities such as gold, oil, or agricultural products. These funds appeal to investors who have a strong conviction about the performance of a particular commodity. For instance, during periods of economic uncertainty, gold-focused funds often see a surge in demand as investors flock to the safe-haven asset. Similarly, energy-focused funds attract investors when there are disruptions in oil supply or significant geopolitical events affecting oil prices. While these funds offer the potential for high returns, they also come with higher risks due to their lack of diversification.

Sector Commodity Index Funds are another important segment within the commodity index funds market. These funds concentrate on commodities within a specific sector, such as energy, agriculture, or metals, allowing investors to target particular segments of the commo

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Vanguard's growth index fund traded under the ticker symbol VUG has a concentrated portfolio with roughly 55 percent of assets allocated to technology stocks. Stocks relating to consumer discretionary accounted for the second largest portion of assets, accounting for approximately 20 percent. VUG may appeal to investors seeking a high growth-oriented stock ETF with lower costs.

While passively-managed index funds only constituted 19 percent of the total assets managed by investment companies in the the United States in 2010, this share had increased to 48 percent by 2023. Active mutual funds are funds of pooled money managed by a fund manager, who actively researches new investment opportunities and amends the fund's portfolio accordingly. This contrasts to passive funds, where the fund's portfolio is (usually) determined by an external stock market index such as the Dow Jones Industrial Average or the FTSE 100.

The global commodity index funds market is experiencing robust growth, driven by increasing investor interest in diversification and hedging against inflation. The market, currently estimated at $500 billion in 2025, is projected to achieve a compound annual growth rate (CAGR) of 12% from 2025 to 2033, reaching approximately $1.6 trillion by 2033. Several factors contribute to this expansion. Firstly, rising inflation globally is pushing investors towards alternative assets like commodities, offering a potential inflation hedge. Secondly, growing awareness of commodity market volatility and the need for sophisticated investment strategies is driving demand for professionally managed commodity index funds. Thirdly, the increasing sophistication of index fund structures, allowing access to diverse commodity baskets, is attracting both institutional and retail investors. The segments within this market show varying growth trajectories. Precious metal index funds remain a significant portion, while agricultural and energy index funds are experiencing faster growth, fueled by concerns about food security and the transition to renewable energy. Geographic distribution reveals strong growth in Asia-Pacific regions, driven primarily by China and India's expanding economies and increased participation in global commodity markets. North America continues to be a major market, while Europe demonstrates steady growth alongside the Middle East and Africa. Competitive dynamics are shaped by a mix of established players like BlackRock, Invesco, and iShares, and niche players specializing in particular commodity sectors. The market faces challenges, including inherent commodity price volatility, regulatory complexities across different regions, and potential geopolitical risks impacting commodity supply chains. Despite these restraints, the long-term outlook for commodity index funds remains positive, fueled by sustained investor demand for diversified portfolios, inflation hedging strategies, and access to complex commodity markets through easily accessible and managed investment vehicles. This necessitates continuous innovation in fund design, risk management strategies, and accessibility to cater to the evolving needs of a growing investor base.

Brazil Foreign Investment Portfolio: Composition %: Stock Index Options data was reported at 0.000 % in Dec 2018. This records a decrease from the previous number of 0.002 % for Nov 2018. Brazil Foreign Investment Portfolio: Composition %: Stock Index Options data is updated monthly, averaging 0.000 % from Jul 2016 (Median) to Dec 2018, with 30 observations. The data reached an all-time high of 0.054 % in Nov 2016 and a record low of 0.000 % in Dec 2018. Brazil Foreign Investment Portfolio: Composition %: Stock Index Options data remains active status in CEIC and is reported by Securities and Exchange Commission of Brazil . The data is categorized under Global Database’s Brazil – Table BR.ZA016: Securities and Exchange Commission of Brazil: Foreign Investment Portfolio: Value of Investments.

The Passive ETF market is experiencing robust growth, driven by increasing investor preference for low-cost, diversified investment strategies. The market, estimated at $10 trillion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 12% from 2025 to 2033. This expansion is fueled by several key factors: the growing popularity of index funds and ETFs among retail and institutional investors seeking efficient market exposure; the rise of robo-advisors and automated investment platforms that heavily utilize passive investment strategies; and ongoing technological advancements that are lowering the barriers to entry and making ETF trading more accessible. The segment's growth is further amplified by the increasing complexity of the financial markets, leading investors to seek simpler, more transparent, and cost-effective solutions. Different ETF types, such as Bond ETFs, Stock ETFs, and Sector ETFs, contribute significantly to this growth, with Stock ETFs currently dominating the market share. While the increasing popularity of active ETFs presents some level of competition, passive strategies continue to attract substantial investment due to their proven long-term performance and cost-effectiveness. Geographic distribution shows significant regional variations. North America currently holds the largest market share, driven by the robust presence of major ETF providers and a developed financial infrastructure. However, Asia-Pacific is predicted to witness significant growth over the forecast period, fueled by increasing financial literacy and a burgeoning middle class. The sales channels are split between direct and indirect sales, with institutional investors heavily favoring direct sales while retail investors primarily engage with indirect sales through brokers and financial advisors. This distribution channel difference is anticipated to remain consistent over the projected period, influenced by the distinct investment strategies and market access of institutional versus retail investors. The competitive landscape is highly fragmented, with major players such as BlackRock, Vanguard, and State Street Global Advisors leading the charge. However, the market remains receptive to innovation and emerging players, particularly in regions experiencing rapid growth.

According to a survey conducted in April 2024, 67 percent of surveyed millennials indicated that their current investment portfolio contained Exchange Traded Funds (ETFs). According to the same survey, the main reason for having ETFs in their portfolio was for the diversification benefits.

A slightly higher proportion of people's investment portfolios were passive, than the share of active investment portfolios. Passive investment portfolios usually involve less action and are based on long-term investments, such as index portfolios. Active investment portfolios are based on more action following more short-term price fluctuations, where the manager tries to beat the market through research, analysis and own judgement.