The number of exchange traded funds (ETFs) worldwide grew markedly during the period from 2003 to 2023. There were 10,319 ETFs globally in 2023, compared to 276 in 2003. As of 2022, ETFs worldwide managed assets up to over 11 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 123 ETFs in 2003, this amount has grown to a total of 3,844 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 eight trillion U.S. dollars, increasing from 151 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 one-third 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.

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.

During the 2024 financial year, India had 141 equity Exchange Traded Funds (ETFs). Debt ETFs followed, with a total of 24. The number of ETFs has been on a steady rise each year since the financial year 2017.

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 534.9 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 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 value of assets of exchange traded funds (ETFs) worldwide grew markedly during the period from 2003 to 2023, reaching over 11.5 trillion U.S. dollars in 2023. The number of ETFs worldwide grew as well during the period, from 276 in 2003, up to 8,754 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 in Domestic Equity Funds, Transactions (BOGZ1FU564091600A) from 2002 to 2024 about ETF, equity, transactions, domestic, assets, and USA.

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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

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.

This statistic presents the number of Exchange Traded Funds worldwide in 2016, by asset class. In 2016, there were 3,598 equity ETFs globally.

The total number of ESG ETFs worldwide grew markedly since 2006, when the total number of ESG ETFs rested at 15. The total number of ESG ETFs stood at 1,406 globally as of February 2024.

The total net assets of the exchange traded funds (ETFs) in the United States amounted to approximately 8.09 trillion U.S. dollars in 2023. This compares to only 102 billion U.S. dollars in 2002, indicating the strong growth in popularity of this kind of investment fund over the last two decades.

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.

The total number of exchange traded funds (ETFs) in the United States increased every year from 2000 to 2023. There were a total of 1,872 index ETFs in the U.S. in 2023, and a total of 1,178 actively managed ETFs. In the same year, the total number of non-1940 Act ETFs in the U.S. sat at 58. This compares to a total of only 80 ETFs in 2000, all of which were actively managed.

The Asia Pacific exchange-traded fund (ETF) industry is experiencing robust growth, projected to reach a market size of $1.17 trillion in 2025, with a compound annual growth rate (CAGR) of 6.59% from 2019 to 2033. This expansion is fueled by several key drivers. Increasing investor sophistication and a growing preference for passive investment strategies are driving demand for ETFs as a cost-effective and diversified investment vehicle. Furthermore, the rising middle class in several Asian economies, coupled with increased financial literacy, is expanding the investor base significantly. Regulatory reforms promoting ETF development and the increasing availability of diverse ETF products catering to specific market segments also contribute to this growth trajectory. Competition among major players like BlackRock's iShares, Nikko Asset Management, and others fuels innovation and product development, further boosting market expansion. However, factors such as market volatility and geopolitical uncertainties could act as potential restraints, although the overall outlook remains positive. Looking ahead, the Asia Pacific ETF market is expected to witness considerable diversification, with growth driven by thematic ETFs focused on sectors like technology, sustainable investing, and emerging markets. The increasing integration of financial technology (FinTech) is streamlining investment processes, making ETFs more accessible to a wider range of investors. Regional variations in growth will be influenced by factors such as economic development, regulatory frameworks, and investor sentiment within individual countries. China, India, and Japan are likely to be key contributors to overall market growth given their substantial economies and expanding investor bases. Continued focus on innovation, investor education, and regulatory support will be crucial in shaping the future trajectory of the Asia Pacific ETF industry. Recent developments include: May 2023: Nomura Investor Relations Co. Ltd ("Nomura IR") and Nomura Securities Co. Ltd ("Nomura Securities") partnered with QUICK Corp. to run a sponsored research company., December 2022: The new ETF-listed index fund, US Equity (Dow Average) Nikko Asset Management Co. Ltd, announced no currency hedge. It was launched on the Tokyo Stock Exchange on December 16.. Key drivers for this market are: Accessible Investment Platforms, Growing Culture of Financial Investment. Potential restraints include: Accessible Investment Platforms, Growing Culture of Financial Investment. Notable trends are: Equity ETFs Dominate the ETF Market.

Revenue for the Open-End Investment Funds industry has been increasing over the five years to 2024. Open-end investment funds revenue has been growing at a CAGR of 0.6% to $176.7 billion over the past five years, including an expected decline of 0.4% in 2024 alone. In the same year, profit is set to fall to 29.4%. Industry revenue has been increasing alongside overall asset growth, despite operators being forced to lower fees to meet shifting consumer preferences. The greatest shift in the industry has been an evolving investor preference for exchange-traded funds (ETFs). While mutual funds account for the majority of industry assets, growth in ETF assets has significantly outpaced that of mutual funds. Expenses that mutual fund investors incur have fallen from 0.5% of assets in 2018 to 0.4% in 2023, as industry operators have cut fees to attract new capital due to pressure from new funds (latest data available). Also, in 2020, the financial stimulus and lowered interest rates in response to the pandemic helped increase asset prices in the latter half of the current period. Open-end investment funds' revenue is expected to grow at a CAGR of 3.3% to $207.5 billion over the five years to 2029. The fears over inflation and a possible recession are expected to dominate the beginning of the outlook period. The Federal Reserve is expected to continue cutting interest rates as inflationary pressures ease. Investment companies' importance will continue to grow, with mutual funds and ETFs representing key channels for individual and institutional investors to access financial markets.

As of September 2024, there were a total of 5,498 sustainable funds in Europe, making it emerge as a leader when compared to the other regions in the world. In fact, European sustainability funds accounted for more than 70 percent of the total. On the other end of the spectrum, Australia & New Zealand had 267 sustainable ETFs.

In 2024, around 39 exchange-traded funds (ETFs) were newly listed on the Tokyo Stock Exchange in Japan. The total number of ETFs listed on the Tokyo Stock Exchange increased to 342.

United States Assets: Flow: MFC: Exchange-Traded Funds data was reported at 2.959 USD bn in Mar 2018. This records an increase from the previous number of -1.719 USD bn for Dec 2017. United States Assets: Flow: MFC: Exchange-Traded Funds data is updated quarterly, averaging 0.000 USD bn from Dec 1951 (Median) to Mar 2018, with 266 observations. The data reached an all-time high of 14.587 USD bn in Mar 2009 and a record low of -14.774 USD bn in Jun 2013. United States Assets: Flow: MFC: Exchange-Traded Funds data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s USA – Table US.AB066: Funds by Instruments: Flows and Outstanding: Total Miscellaneous Financial Claims.

The total net assets under management (AUM) of exchange traded funds (ETFs) in the United States increased considerably from 2000 to 2023. In 2023, the total assets of index ETFs amounted to a value of over 7.4 trillion U.S. dollars, while those of actively managed ETFs amounted to a value of approximately 515 billion U.S. dollars. In the same year, the total assets of non-1940 Act ETFs amounted to a value of approximately 120.7 billion U.S. dollars.