The number of exchange-traded funds (ETFs) worldwide grew markedly during the period from 2003 to 2023. There were ****** ETFs globally in 2023, compared to *** in 2003. As of 2022, ETFs worldwide managed assets up to over ** trillion U.S. dollars. What are ETFs? Exchange-traded funds (ETFs) have been available on the financial markets since the early 1990s. They are one of the main types of investment funds, alongside mutual funds, insurance funds, pension funds, real estate funds, hedge funds or private equity funds. The main feature which distinguishes exchange-traded funds from other investment funds is that they are always traded on a stock exchange (like common stock) and their price is determined through purchase and sale transactions. Tracking stock indices The main purpose of ETFs is to replicate the performance of an index or a given financial instrument, rather than outperform it. For instance, an investor wishing to achieve the same performance as the Dow Jones Industrial Average index could invest in the DJIA ETF. Some of the ETFs also allow tracking the opposite of index performance – if an investor thinks that the price of silver will drop, he can purchase the shares of a reverse silver ETF in order to earn money on falling silver prices.

The number of exchange-traded funds (ETFs) in the United States has steadily increased; Starting with *** ETFs in 2003, this amount has grown to a total of ***** ETFs as of 2024. The value of assets under management (AUM) allocated to ETFs in the United States has experienced a sharp increase. As of 2023, the total AUM of ETFs amounted to approximately ***** trillion U.S. dollars, increasing from *** billion U.S. dollars in 2003. What is an ETF? An ETF is a pooled financial product that can be bought and sold on the stock market by retail and institutional investors. ETFs are structured to track the performance of underlying securities. This may range from tracking a singular underlying commodity to a diverse assortment of securities. Some of the largest ETF providers by market share in the United States as of 2025 included BlackRock and Vanguard, each accounting for approximately ********* or more of the U.S. market. Types of ETFs Broad-based domestic equity, global equity, and bond ETFs have the highest issuance rates of ETFs in the United States. A broad-based index sets a benchmark to track the performance of a group of underlying securities. A popular example includes the evaluated performance difference between the S&P 500 ESG and S&P 500 indexes.

During the 2024 financial year, India had *** equity Exchange Traded Funds (ETFs). Debt ETFs followed, with a total of **. The number of ETFs has been on a steady rise each year since the financial year 2017.

In 2024, the number of exchange-traded funds (ETFs) listed on the Tokyo Stock Exchange in Japan reached 342. The number of listed ETFs increased from 309 in December of the previous year.

The value of assets of exchange traded funds (ETFs) worldwide grew markedly during the period from 2003 to 2023, reaching over **** trillion U.S. dollars in 2023. The number of ETFs worldwide grew as well during the period, from *** in 2003, up to ***** in 2022. What are ETFs? An exchange traded fund is a type of investment fund traded on a stock exchange, but differs from traditional mutual funds as they can be traded throughout the day, and not just once a day. Most ETFs are following the performance of a stock market index, such as the S&P 500. Benefits of ETFs ETFs are an easy way for an investor to diversify their portfolio and are attractive to investors for a number of reasons. The stock-like features that they exhibit make them manageable, whether they are being used for asset allocation long-term investment purposes or a short-term market timed investment strategies. ETFs do not require active management, which has the advantage of making them relatively low cost. They also have typically low marketing costs and accounting expenses.

Graph and download economic data for Exchange-Traded Funds; Total Financial Assets, Level (BOGZ1FL564090005Q) from Q4 1945 to Q1 2025 about ETF, assets, and USA.

As of August 2024, the exchanged traded fund listed in Europe with the highest net inflow was the iShares Core S&P 500 UCITS ETF. From the start of the year up until this point, the ETF recorded more than 10.4 billion U.S. dollars of net inflows, being the difference between investors who purchase shares in the fund and investors who redeem shares in the fund.

Exchange Traded Fund Market Outlook

The global exchange traded fund (ETF) market size was estimated at approximately USD 9.3 trillion in 2023 and is projected to reach USD 20.7 trillion by 2032, growing at a compound annual growth rate (CAGR) of 9.2%. This impressive growth is driven by several factors including increasing demand for diversified investment portfolios, lower expense ratios compared to mutual funds, and enhanced market liquidity.

One of the primary growth factors for the ETF market is the increased awareness and understanding of ETFs among retail and institutional investors. ETFs provide a cost-effective way to access a broad array of asset classes and investment strategies, which has contributed significantly to their popularity. Additionally, the rise in digital trading platforms has made it easier for individual investors to buy and sell ETFs, further fueling market expansion. Institutional investors are also increasingly favoring ETFs for their flexibility and efficiency in portfolio management, which has driven volume and growth in the market.

Another significant growth driver is the continuous innovation within the ETF industry. New types of ETFs are being introduced regularly, including thematic ETFs focusing on emerging industries like artificial intelligence, renewable energy, and blockchain technology. These innovative products attract a diverse set of investors looking to capitalize on specific market trends or sectors. Furthermore, the development of active ETFs, which combine the benefits of active management with the liquidity and transparency of ETFs, has opened new avenues for growth.

The regulatory environment has also played a crucial role in the expansion of the ETF market. Regulatory bodies across various regions have provided a supportive framework that fosters the growth of ETFs. For example, the Securities and Exchange Commission (SEC) in the United States has streamlined the approval process for new ETFs, making it easier for asset managers to launch new products. Similar supportive measures have been witnessed in Europe and Asia, contributing to the global growth of the market.

Open Ended Funds Oef have been gaining traction as an alternative investment vehicle alongside ETFs. These funds offer investors the flexibility to enter and exit at their convenience, which is particularly appealing in volatile market conditions. Unlike ETFs, which trade on exchanges, Open Ended Funds Oef are priced at the end of the trading day based on their net asset value. This structure provides a different approach to liquidity and pricing, which can be advantageous for certain investment strategies. Investors looking for a more hands-on approach to fund management may find Open Ended Funds Oef to be a suitable option, as they often allow for more active management compared to the passive nature of many ETFs. The growing interest in these funds highlights the diverse range of investment products available to meet varying investor needs and preferences.

Regionally, North America holds the largest share of the ETF market, driven by strong market adoption in the United States and Canada. The presence of well-established financial markets and high investor awareness contribute to this dominance. Europe is another significant market, with increasing ETF adoption in countries like Germany, the United Kingdom, and France. The Asia Pacific region is experiencing rapid growth, particularly in countries like China, Japan, and Australia, due to rising financial literacy and growing investment in equities. The Middle East & Africa, while currently a smaller market, is witnessing gradual growth driven by economic reforms and increasing interest in diversified investment options.

Type Analysis

Equity ETFs represent the largest segment within the ETF market. These funds invest in stocks and aim to replicate the performance of an underlying equity index, such as the S&P 500. The appeal of equity ETFs lies in their ability to offer broad market exposure, diversification, and relatively low cost. Investors are increasingly gravitating towards equity ETFs to capitalize on market growth and potential capital appreciation. The robust performance of stock markets globally has further fueled the demand for equity ETFs, making them a cornerstone of many investment portfolios.

Bond ETFs are another significant segment, providing exposure to fixed-income securities such as government and corporate bonds

The largest exchange-traded fund (ETF) traded in the United States, as of June 18, 2024, was the State Street SPDR S&P 500. At this point, the ETF held assets under management (AUM) of approximately ***** billion U.S. dollars. The State Street SPDR S&P 500 ETF was created in January 1993, and tracks the S&P 500 Index. What are ETFs? An ETF is a basket of shares or other financial assets which generally tracks an underlying index. They are similar to mutual funds, with the fundamental difference that ETFs are listed on stock exchanges, with ETF shares being traded just like regular stock. Are ETFs a good investment? As ETFs holds a basket of stocks and other financial assets, they are diverse and are considered low-risk investments. This makes them popular among risk averse investors, beginners, or among those who plan to invest more long-term. The popularity of ETFs has increased dramatically in the last decade, which can be seen by the steady increase of number of ETFs worldwide.

The number of Exchange Traded Funds (ETFs) opened in the United States increased considerably from 2006 to 2023. There were *** new ETFs in the United States in 2023, up from *** in 2022.

The Exchange-Traded Fund (ETF) market is experiencing robust growth, driven by increasing investor demand for diversified, low-cost investment vehicles. 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 rising popularity of passive investment strategies, coupled with the ease of access and transparency offered by ETFs, is attracting a broad range of investors, from retail individuals to institutional players. Furthermore, the increasing availability of niche ETFs targeting specific sectors, commodities, and currencies allows for tailored portfolio diversification, further stimulating market growth. Technological advancements, such as the rise of robo-advisors and fractional share trading, are also contributing to greater ETF accessibility and adoption. The geographic expansion into emerging markets adds another dimension to this growth, with regions like Asia-Pacific witnessing particularly strong uptake. However, potential regulatory changes and market volatility could act as restraints to this positive growth trajectory. Despite potential headwinds, the long-term outlook for the ETF market remains positive. The continued evolution of product offerings, combined with ongoing innovation in trading technology and investor education, is expected to further propel market expansion. The dominance of large asset management firms like BlackRock, Vanguard, and State Street Global Advisors is likely to persist, although increased competition from smaller, more specialized ETF providers is anticipated. The increasing adoption of ESG (Environmental, Social, and Governance) investing principles is also shaping the ETF landscape, with a growing number of ETFs incorporating ESG factors into their investment strategies. This trend is expected to gain further momentum in the coming years, adding another layer of complexity and opportunity within the market. The geographical distribution of the market will likely continue to be skewed towards North America and Europe, but the growth in Asia-Pacific is expected to be significant, particularly in countries like China and India.

Goal 13 of the United Nations Sustainable Development Goals (SDG) - climate action - was the most targeted by global ESG ETFs in 2025. Among the 600 ESG ETFs that targeted the SDGs, 338 targeted the 13th goal. Affordable and clean energy (goal number 7) was the second most targeted goal, with 65 ETFs as of May 2025. Institutional investors primarily review company reports for underlying holdings as a method for ESG ETF evaluation, so fund managers must focus on companies with strong ESG practices and transparent sustainability reporting. What is Sustainable investing? Sustainable investing is becoming increasingly important in the financial world. In its broadest form, sustainable investing is where investment decisions incorporate how a company manages risks associated with environmental, social, and governance (ESG) issues. Many investors like the idea of making money while simultaneously catering to the growing demand for greater emphasis on the ESG scores of companies. ESG scores are the simplest way to incorporate environmental, social, and governance concerns into investment strategies because they provide standardized values that investors can use to compare companies' performance on ESG concerns. Why have ESG ETFs seen a rise in popularity? Investors are becoming more interested in ESG ETFs lately. Between 2014 and 2024, the number of ESG ETFs worldwide experienced a significant increase of nearly tenfold. This surge in interest and investment can be partially attributed to consumers' increased awareness, who prefer to support businesses that align with their values and make positive contributions to society and the environment. Moreover, regulators and policymakers are increasingly interested in ESG as they seek assistance from the corporate sector in resolving issues such as climate change, workplace diversity, and human rights.

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ETF Market Size 2025-2029

The ETF market size is forecast to increase by USD 17.94 billion at a CAGR of 20.2% between 2024 and 2029.

The market continues to experience robust growth, with increasing institutional adoption and investor preference for cost-effective, diversified investment solutions. One of the key drivers propelling this market forward is the expansion of bond ETFs, blockchains which now account for over one-third of the total assets under management. This trend is expected to persist, as fixed income securities offer attractive yields in the current low-interest-rate environment. However, the market is not without its challenges. A significant concern is the potential for transaction risks, particularly in illiquid securities. This risk can lead to price discrepancies between the ETF's net asset value and its market price, potentially resulting in losses for investors.
Additionally, market volatility and sudden price movements can exacerbate these risks, making it crucial for market participants to closely monitor market conditions and adjust their strategies accordingly. Companies seeking to capitalize on the growth opportunities in the market while mitigating transaction risks may consider focusing on liquid securities and implementing robust risk management strategies.

What will be the Size of the ETF Market during the forecast period?

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The exchange-traded fund (ETF) market continues to evolve, integrating advanced technologies and applications across various sectors. Machine learning algorithms enhance the investment process, enabling more precise index construction in fixed income ETFs. Currency ETFs leverage technology to offer real-time exposure to foreign exchange markets. Small businesses benefit from scalability and affordability, with increasing numbers turning to ETFs for diversified investment opportunities. Service providers and financial institutions collaborate to ensure financial market stability, offering innovative solutions for passive investing strategies, including index funds and index mutual funds.
The integration of artificial intelligence and blockchain technology further enhances ETF offerings, reducing transaction costs and improving security. The ongoing unfolding of market activities reveals evolving patterns in trade finance, international trade, and asset management. ETFs continue to adapt, providing investors with efficient and cost-effective investment vehicles.

How is this ETF Industry segmented?

The etf industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Fixed income ETF
  Equity ETF
  Commodity ETF
  Real estate ETF
  Others


Product Type

  Large cap ETFs
  Mega cap ETFs
  Mid cap ETFs
  Small cap ETFs


End-User

  Retail Investors
  Institutional Investors


Investment Type

  Active
  Passive


Distribution Channel

  Brokerage Platforms
  Direct Sales


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Switzerland
    The Netherlands
    UK


  Middle East and Africa

    UAE


  APAC

    China
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The fixed income etf segment is estimated to witness significant growth during the forecast period.

In the dynamic securities markets of 2024, the fixed income Exchange-traded fund (ETF) emerged as a leading investment choice. This type of ETF, which invests in various fixed-income securities like corporate, municipal, and treasury bonds, is traded on a centralized stock exchange. In contrast, most corporate bonds are sold through bond brokers, limiting bond buyers' exposure to the stock exchange. Fixed income ETFs, however, provide extensive exposure, enabling investors to participate in the stock exchange's activity. These ETFs employ various technologies, such as Optical Character Recognition and Machine Learning, to ensure efficient trade processing and risk management.

Additionally, the integration of Blockchain technology enhances security and transparency. Fixed income ETFs cater to diverse investor needs, including small businesses seeking scalability and financial institutions aiming for financial market stability. The market offers various categories, such as Government Bond ETFs, which invest in government securities, and Currency ETFs, which provide exposure to foreign currencies. Furthermore, Real Estate ETFs, Commodity ETFs, and Alternative Trading Funds expand the investment universe. Service providers play a crucial role in facilitating these investment solutions, ensuring affordability through passive investing strategies and competitive transaction costs. Trade agreements and internati

The South American ETF market, valued at $9.24 billion in 2025, is projected to experience robust growth, exceeding a 5% Compound Annual Growth Rate (CAGR) from 2025 to 2033. This expansion is driven by several factors. Increasing investor interest in emerging markets, particularly in Latin America, fueled by the region's economic diversification and potential for higher returns, is a key catalyst. Furthermore, the rise of fintech and improved access to online investment platforms have broadened participation, making ETFs more accessible to a wider range of investors. Growing regulatory clarity and infrastructure development within South American financial markets further enhances investor confidence and participation. Brazil, with its relatively mature capital markets and robust economy, likely accounts for the largest share of the market. However, other nations like Colombia, Peru, and Chile are also demonstrating significant growth potential as their economies develop and attract foreign investment. The diverse range of ETFs offered, encompassing fixed income, equity, commodities, and alternative investment strategies, caters to a broad spectrum of investor risk profiles and preferences, contributing to market expansion. While the market faces challenges, such as macroeconomic volatility in certain South American economies and potential currency fluctuations, the long-term growth outlook remains positive. The continued development of sophisticated investment products and the overall improvement in market infrastructure should mitigate these risks. The entry of international players alongside established local asset managers like Banco do Brasil and Itaú Asset Management further intensifies competition and enhances product innovation, benefiting investors with diverse choices and improved pricing. The sustained growth trajectory is expected to attract further investments, creating a virtuous cycle of expansion and market development within the South American ETF landscape throughout the forecast period. Recent developments include: April 2023: Xtrackers by DWS Launches (Undertakings for the Collective Investment in Transferable Securities) UCITS exchange-traded funds (ETFs) in Brazil., November 2022: Galaxy And Itau partnered to develop a comprehensive suite of Brazilian-listed, physically backed, digital asset exchange-traded funds.. Key drivers for this market are: Increased Transparency and the Ability to Trade Throughout the Day, Increased Demand for Low-Cost and Diversified Investment Options. Potential restraints include: Increased Transparency and the Ability to Trade Throughout the Day, Increased Demand for Low-Cost and Diversified Investment Options. Notable trends are: Increase in Number of ETFs.

As of the first quarter of 2024, Asia-Pacific had the lowest number of assets managed through Exchange Traded Funds (ETFs). The United States had the largest number of assets managed by ETFs with roughly 13 percent of the U.S. equity market operating through ETFs.

The number of closed Exchange Traded Funds (ETFs) in the United States increased overall between 2002 and 2023, despite some fluctuations. In 2023, there were 194 closed (liquidated or merged) ETFs, a sharp increase compared to 2022.

The South America ETF market, valued at $9.24 billion in 2025, exhibits robust growth potential, projected to expand at a Compound Annual Growth Rate (CAGR) exceeding 5.00% from 2025 to 2033. This growth is fueled by increasing investor interest in emerging markets, particularly South America, driven by factors such as economic diversification, rising middle classes in key countries like Brazil and Colombia, and the region's abundant natural resources. Furthermore, the increasing availability of sophisticated investment vehicles like ETFs makes accessing these markets more accessible to a broader range of investors. Competition among major players like Banco do Brasil, iShares, Itaú Asset Management, and others, further stimulates innovation and product development within the sector, broadening the appeal of South American ETFs. While potential macroeconomic headwinds and geopolitical instability within the region pose challenges, the long-term growth prospects remain positive, supported by consistent economic development in several South American nations. The sustained growth trajectory is underpinned by several key trends. The rising adoption of passive investment strategies globally favors ETF growth. Moreover, regulatory developments aimed at simplifying investments and improving market transparency within South America contribute positively. Though potential economic volatility and currency fluctuations remain risks, the diversification benefits offered by South America ETFs continue to attract investors seeking higher returns, thereby mitigating these risks. The expanding range of ETFs focusing on specific South American sectors (e.g., commodities, technology, financials) further caters to diverse investor preferences, driving market expansion. The market's relatively high concentration among major players indicates potential opportunities for smaller firms to gain market share through niche product offerings and strategic partnerships. Key drivers for this market are: Increased Transparency and the Ability to Trade Throughout the Day, Increased Demand for Low-Cost and Diversified Investment Options. Potential restraints include: Increased Transparency and the Ability to Trade Throughout the Day, Increased Demand for Low-Cost and Diversified Investment Options. Notable trends are: Increase in Number of ETFs.

Russia Number of Trades: MICEX Stock Exchange: MS: Secondary Market: ETF (Exchange Traded Funds) data was reported at 65,983.000 Unit in Jan 2019. This records a decrease from the previous number of 76,878.000 Unit for Dec 2018. Russia Number of Trades: MICEX Stock Exchange: MS: Secondary Market: ETF (Exchange Traded Funds) data is updated monthly, averaging 8,948.500 Unit from Aug 2015 (Median) to Jan 2019, with 42 observations. The data reached an all-time high of 76,878.000 Unit in Dec 2018 and a record low of 2,165.000 Unit in Nov 2015. Russia Number of Trades: MICEX Stock Exchange: MS: Secondary Market: ETF (Exchange Traded Funds) data remains active status in CEIC and is reported by Moscow Exchange. The data is categorized under Global Database’s Russian Federation – Table RU.ZB001: MICEX Stock Exchange: No of Trades: by Securities.

As of April 29, 2025, Vanguard Total Stock Market ETF was the highest valued exchange-traded fund (ETF) globally, with a market capitalization of over 1.7 trillion U.S. dollars. The market capitalization of an ETF is calculated by multiplying the number of shares issued in the fund by the share price. This ETF is also the fourth-largest ETF by assets under management. However, the Vanguard fund is different because shares in the fund are sold as various different products, some of which are structured as ETFs, while others are structured as traditional mutual funds. What are ETFs? ETFs are similar to mutual funds, in that they consist of a pool of investors’ funds which are managed by an independent third party for the purpose of a common financial investment. However, ETFs differ through how shares in the fund are bought and sold through a stock exchange, rather than directly from the fund manager. This provides the advantages of generally lower prices (as the transaction costs are paid by the exchange operator rather than the fund manager), and the possibility of intraday trading (as shares in a traditional mutual fund can only be bought and sold after the close of daily trading. The total assets managed by ETFs globally is almost six times lower than that of mutual funds, although the gap in AUM between ETFs and mutual funds in the United States is much lower, at just over three times less. Who are the largest ETF providers? The largest provider of ETFs globally is Blackrock, the world’s largest asset management company. As of April 2025, the company had more than three trillion U.S. dollars of assets under management in exchange traded funds in the U.S. alone, while Blackrock’s total assets under management across all products reached almost 11.6 trillion U.S. dollars. Rounding out the top three providers of ETFs are fellow U.S asset managers Vanguard and State Street.

Israel Number of Listed Securities: TASE: Shares and Convertibles: Exchange Traded Funds (ETFs) data was reported at 131.000 Unit in Nov 2018. This records a decrease from the previous number of 417.000 Unit for Oct 2018. Israel Number of Listed Securities: TASE: Shares and Convertibles: Exchange Traded Funds (ETFs) data is updated monthly, averaging 266.000 Unit from Sep 2006 (Median) to Nov 2018, with 147 observations. The data reached an all-time high of 437.000 Unit in Aug 2018 and a record low of 85.000 Unit in Sep 2006. Israel Number of Listed Securities: TASE: Shares and Convertibles: Exchange Traded Funds (ETFs) data remains active status in CEIC and is reported by Tel Aviv Stock Exchange. The data is categorized under Global Database’s Israel – Table IL.Z008: Tel Aviv Stock Exchange: No of Listed Companies and Securities.