iShares Core U.S. Aggregate Bond ETF was the second-largest exchange traded fund (ETF) which invested solely in fixed income assets traded on U.S. markets as of February 3, 2025. At this time, this ETF held around 121.22 billion U.S. dollars in assets. The Vanguard Total Bond Market ETF ranked in the top spot managing 122.94 billion U.S. dollars in assets. Fixed income ETFs invest exclusively in government and corporate bonds, meaning the return for the assets purchased is known in advance. While this investment strategy carries less risk, it can also produce lower returns under many market conditions.

Indonesia Govt Bond Ownership: Non Bank: Resident: Mutual Fund data was reported at 186,798.392 IDR bn in 21 Mar 2025. This records a decrease from the previous number of 186,929.392 IDR bn for 20 Mar 2025. Indonesia Govt Bond Ownership: Non Bank: Resident: Mutual Fund data is updated daily, averaging 95,815.279 IDR bn from May 2009 (Median) to 21 Mar 2025, with 3815 observations. The data reached an all-time high of 190,918.152 IDR bn in 22 Nov 2024 and a record low of 39,360.000 IDR bn in 28 Aug 2013. Indonesia Govt Bond Ownership: Non Bank: Resident: Mutual Fund data remains active status in CEIC and is reported by Directorate General of Budget Financing and Risk Management. The data is categorized under High Frequency Database’s Government & Other Securities – Table ID.ZB002: Ministry of Finance: Government Securities: Tradable: by Ownership.

Securities Ownership: Local: Government Bond (IDR): Mutual Fund在2019-07达425.700 IDR bn，相较于2019-06的422.000 IDR bn有所增长。Securities Ownership: Local: Government Bond (IDR): Mutual Fund数据按月度更新，2009-08至2019-07期间平均值为658.240 IDR bn，共119份观测结果。该数据的历史最高值出现于2017-02，达2,181.660 IDR bn，而历史最低值则出现于2013-10，为178.100 IDR bn。CEIC提供的Securities Ownership: Local: Government Bond (IDR): Mutual Fund数据处于定期更新的状态，数据来源于Indonesia Financial Services Authority，数据归类于Indonesia Premium Database的Financial Market – Table ID.ZB007: Financial Services Authority: Securities Ownership: by Type。

United States Assets: Outs: TS: Money Market Mutual Funds (MM) data was reported at 879.219 USD bn in Mar 2018. This records an increase from the previous number of 702.177 USD bn for Dec 2017. United States Assets: Outs: TS: Money Market Mutual Funds (MM) data is updated quarterly, averaging 18.909 USD bn from Dec 1951 (Median) to Mar 2018, with 266 observations. The data reached an all-time high of 879.219 USD bn in Mar 2018 and a record low of 0.000 USD bn in Dec 1973. United States Assets: Outs: TS: Money Market Mutual Funds (MM) data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s USA – Table US.AB045: Funds by Instruments: Flows and Outstanding: Treasury Securities.

Turkey GDDS: RN: NV: RE: NB: Mutual Funds data was reported at 38,023.100 TRY mn in Jul 2018. This records a decrease from the previous number of 38,297.200 TRY mn for Jun 2018. Turkey GDDS: RN: NV: RE: NB: Mutual Funds data is updated monthly, averaging 25,599.300 TRY mn from May 2012 (Median) to Jul 2018, with 75 observations. The data reached an all-time high of 38,297.200 TRY mn in Jun 2018 and a record low of 14,856.700 TRY mn in May 2012. Turkey GDDS: RN: NV: RE: NB: Mutual Funds data remains active status in CEIC and is reported by Central Bank of the Republic of Turkey. The data is categorized under Global Database’s Turkey – Table TR.Z024: Government Domestic Debt Securities: TRY.

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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 is experiencing significant growth, driven by key factors such as market liquidity and the increasing popularity of bond ETFs. Market liquidity refers to the ease with which securities can be bought and sold in the market without significantly impacting the price. This factor is crucial for ETFs, as they are designed to provide investors with the ability to trade large volumes of securities in a single transaction. Another trend in the market is the growth of bond ETFs, which offer investors exposure to fixed income securities. The market's growth is driven by advancements in technology, such as blockchain, artificial intelligence, big data, optical character recognition, and machine learning, which improve trade finance, facilitate trade agreements, and support financial institutions and service providers. 
However, the market also faces challenges, including transaction risks. These risks arise from the fact that ETFs are traded like individual stocks, but their value is derived from the underlying portfolio of securities. As such, there is a risk that the market price of an ETF may not accurately reflect the value of its underlying securities, leading to potential losses for investors. Despite these challenges, the market is expected to continue growing, driven by the benefits it offers in terms of liquidity, diversification, and cost efficiency.

What will be the Size of the ETF Market During the Forecast Period?

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Exchange-traded funds (ETFs) have revolutionized the investment landscape by offering affordable, transparent, and liquid access to various asset classes, including stocks, bonds, commodities, currencies, and real estate. ETFs function much like mutual funds, pooling assets from investors to purchase a diversified portfolio. However, they differ in their trading mechanism, as they are listed and traded on stock exchanges, allowing for intraday pricing and flexibility. ETFs have gained significant traction due to their affordability and lower transaction costs compared to traditional mutual funds. Their index-based construction aligns with passive investment strategies, providing broad market exposure. Market volatility has not deterred the growth of ETFs, as they offer financial market stability through diversification and the ability to hedge against various risks.
Government support and the proliferation of computer-built ETFs have further bolstered their popularity. Alternative trading funds and specialty ETFs cater to specific investor needs, such as fixed income, real estate, and commodity exposure. ETFs have become a go-to investment vehicle for both retail and institutional investors, offering an efficient and cost-effective solution for passive investing strategies.

How is this ETF Industry segmented and which is the largest segment?

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


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France


  APAC

    China
    Japan
    South Korea


  South America



  Middle East and Africa

By Type Insights

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

Fixed income Exchange-traded funds (ETFs) hold a significant market position in 2024. Distinct from traditional bond investments, which are often bought through bond brokers, fixed income ETFs are exchange-traded products that invest in various fixed-income securities, including corporate, municipal, and government bonds, on a stock exchange. This centralized exchange exposure provides bond buyers with increased access and liquidity compared to the limited exposure offered by corporate bond sales through brokers. Notable categories of fixed income ETFs include Government Bond ETFs, which invest in securities issued by governments, and other types, such as Corporate Bond ETFs and International Bond ETFs. These ETFs offer investors affordability through potential lower transaction costs, net asset value transparency, and passive investment strategies, such as index funds.

Fixed income ETFs cater to both retail and institutional investors, and their offerings span various sectors, including bonds, equity, commodity, currency, and specialty. The financial market stability provided by fixed income ETFs, along with the growing use of technology in trade finance and financial services, further enhances the

The leading ESG fund in Europe in the third quarter of 2024 was BlackRock World ESG Insights Equity Fund, with net inflows of around 2.38 billion U.S. dollars. The following two ESG funds with the largest inflows were JPMorgan US Research Enhanced Index Equity (ESG) ETF and, BlackRock Global Credit ESG Insights Bond Fund, amounting to 1.6 and 1.59 billion U.S. dollars, respectively.

Market Overview:

The global mutual fund assets market size reached USD 76.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 180.1 Billion by 2033, exhibiting a growth rate (CAGR) of 10% during 2025-2033. The market is driven by technological advancements, demographic shifts, increasing disposable incomes in emerging economies, and a growing emphasis on diversified and sustainable investment strategies.

Mutual Fund Assets Market Trends/Drivers:

• Diversified Investment Portfolios: The global mutual fund assets market is growing on account of the increased investor preference for diversified portfolios. Mutual funds offer an accessible way to spread risk across various asset classes, appealing to both novice and experienced investors.
• Technological Advancements: Digital platforms and fintech innovations have democratized access to mutual funds. The integration of artificial intelligence (AI) and machine learning in investment strategies is enhancing personalization and optimizing portfolio management, attracting a tech-savvy investor base.
• Evolving Regulatory Landscape: Regulatory changes globally are aiming to increase transparency and investor protection. Stricter disclosure requirements and the enforcement of fiduciary responsibilities are building investor confidence and stimulating market growth.
• Shifting Demographic Profiles: An aging population in developed countries and rising disposable incomes in emerging markets are key drivers. Mutual funds cater to the varying needs of these demographics, from retirement planning to entry-level investment options.
• Sustainable Investing Trends: There is a noticeable shift toward environmental, social, and governance (ESG) themed mutual funds. This trend reflects a growing awareness of sustainability issues and their long-term impact on investment returns.
• Market Breakup by Investor Type: Institutional investors, with their large capital and long-term investment strategies, significantly influence the mutual fund assets market. Their substantial investments and strategic decision-making shape market dynamics.
• Regional Markets: North America leads in market share due to its advanced financial infrastructure and investment culture. Europe and Asia Pacific also show strong market presence, each with unique growth drivers and challenges.
• Distribution Channels: Financial advisors and brokers are the largest distribution channel, offering personalized investment advice. Banks and direct sellers, including online platforms, also play significant roles, catering to different investor preferences and behaviors.
• Market Potential and Challenges: The mutual fund assets market is supported by its adaptability to investor needs and market conditions. However, it faces challenges like market volatility, geopolitical uncertainties, and evolving regulatory environments.

Mutual Fund Assets Market Trends/Drivers:

Rising interest in diversified investment portfolios

One primary driver of the industry is the increasing inclination toward diversified investment portfolios. With the growing awareness of the risks associated with investing in a single asset class, individual and institutional investors are progressively seeking mutual funds as a means to diversify their investments. Mutual funds offer a blend of stocks, bonds, and other securities, thereby spreading the risk across various financial instruments and markets. This diversification helps mitigate the impact of volatility in any one sector or region and provides exposure to a broader range of growth opportunities. Additionally, mutual funds are managed by professional fund managers, who bring expertise in market analysis and portfolio strategy, further appealing to investors who may lack the time or expertise to manage their investments. This trend is particularly noticeable among new investors and those in emerging markets, where mutual funds are seen as a gateway to more sophisticated investment strategies.

Advancements in fintech

Another key driver is the technological advancements in the financial sector, particularly the emergence of fintech and robo-advisors. These innovations have significantly democratized access to mutual fund investments, making them more accessible to a broader audience. Online platforms and mobile applications have simplified the process of investing in mutual funds, offering user-friendly interfaces, easy account management, and lower entry barriers in terms of minimum investment requirements. Furthermore, the integration of artificial intelligence (AI) and machine learning (ML) in investment management has enabled more personalized and optimized investment strategies, enhancing the appeal of mutual funds. These technological advancements have streamlined the investment process as well as provided educational resources, thereby attracting a tech-savvy generation of investors and those new to financial markets.

Evolving regulatory landscape

The evolving regulatory landscape plays a crucial role in shaping the industry. Regulatory bodies worldwide have been focusing on increasing transparency, improving investor protection, and ensuring the stability of financial markets. These efforts include the implementation of stringent disclosure requirements, the promotion of fair valuation practices, and the enforcement of fiduciary responsibilities of fund managers. Such regulations aim to build investor confidence by ensuring that mutual funds operate in a fair, transparent, and accountable manner. Moreover, some regions have introduced tax incentives for mutual fund investments, further stimulating market growth.

Mutual Fund Assets Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on fund type, investor type, and distribution channel.

Breakup by Fund Type:

• Equity Funds
• Bond Funds
• Money Market Funds
• Hybrid and Other Funds
  

Equity funds account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the fund type. This includes equity funds, bond funds, money market funds, and hybrid and other funds. According to the report, equity funds represented the largest segment.

Equity funds represent the leading fund type segment primarily due to their potential for higher returns over the long term. Despite the associated risks and market volatility, equity funds attract a broad spectrum of investors, from individuals seeking growth to institutional investors looking to maximize returns. Equity funds have gained traction due to historical performance, where equities have outperformed other asset classes over long periods. Additionally, with the increasing accessibility of global markets, equity funds offer diverse international exposure, allowing investors to benefit from growth in various economies. The popularity of these funds is also driven by their adaptability to cater to various investment strategies, from aggressive growth to value-oriented approaches, making them a versatile choice for many investors.

Bond funds are focused on investing in bonds and other debt

United States Assets: Outs: MF: DS: Treasury Securities data was reported at 1,107.966 USD bn in Mar 2018. This records an increase from the previous number of 1,097.203 USD bn for Dec 2017. United States Assets: Outs: MF: DS: Treasury Securities data is updated quarterly, averaging 9.408 USD bn from Dec 1951 (Median) to Mar 2018, with 266 observations. The data reached an all-time high of 1,107.966 USD bn in Mar 2018 and a record low of 0.129 USD bn in Dec 1953. United States Assets: Outs: MF: DS: Treasury Securities data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s USA – Table US.AB024: Funds by Sector: Flows and Outstanding: Mutual Funds.

Japan Assets: Flow: MA: DS: Central Government Securities & FLIP Bonds data was reported at -48.900 JPY bn in Jun 2018. This records a decrease from the previous number of 484.300 JPY bn for Mar 2018. Japan Assets: Flow: MA: DS: Central Government Securities & FLIP Bonds data is updated quarterly, averaging 336.200 JPY bn from Mar 1998 (Median) to Jun 2018, with 82 observations. The data reached an all-time high of 1,505.600 JPY bn in Mar 2012 and a record low of -487.600 JPY bn in Sep 2007. Japan Assets: Flow: MA: DS: Central Government Securities & FLIP Bonds data remains active status in CEIC and is reported by Bank of Japan. The data is categorized under Global Database’s Japan – Table JP.AB039: SNA08: Financial Institution: Insurance & Pension Funds: Insurance: Mutual Aid Insurance: Flow.

From January 2020 through October 2024, the value of money market funds under management in the United Kingdom (UK) remained relatively stable aside from one notable spike in value in October 2022, by January 2023, however, the spike had subsided, and fund levels had fallen below 50 million British pounds.

How are money market yields linked to inflation? The money market yields are influenced by inflation expectations. When inflation expectations rise, investors typically demand higher nominal yields to offset the anticipated decline in purchasing power. Market sentiment regarding inflation is reflected in these yields, which act as indicators for both investors and policymakers. The inflation rate for the Consumer Price Index (CPI) in the United Kingdom went from under one percent in March 2021 to a high of 11.1 percent in October 2022. Although inflation declined to 3.9 percent in October 2023, it remained well above the levels seen before 2021. Consequently, a significant increase in money market yields was observed. Beginning in 2022, the monthly average yields from the British government bonds continued to rise until they reached their peak in mid-2023, indicating higher inflation expectations.

What is LIBOR? The London Interbank Offered Rate, or LIBOR, is a benchmark interest rate that reflects the average interest rate at which major global banks lend to each other in the interbank market. It is used to establish interest rates for financial instruments such as adjustable-rate mortgages, business loans, and derivatives. The six-month overnight London Interbank Offered Rate based on the British pound increased month by month from 2022 onwards, reaching its peak in March 2023 at 4.74 percent. This increase in borrowing costs has a ripple effect throughout the financial system, which means higher interest rates for businesses and consumers overall.

Australia Mutual Funds: Assets: Common Funds: Bonds Issued: National Government data was reported at 0.000 AUD mn in Jun 2018. This stayed constant from the previous number of 0.000 AUD mn for Mar 2018. Australia Mutual Funds: Assets: Common Funds: Bonds Issued: National Government data is updated quarterly, averaging 114.000 AUD mn from Jun 1988 (Median) to Jun 2018, with 117 observations. The data reached an all-time high of 210.000 AUD mn in Dec 1989 and a record low of 0.000 AUD mn in Jun 2018. Australia Mutual Funds: Assets: Common Funds: Bonds Issued: National Government data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.Z015: Mutual Funds: Common Funds.

United States Assets: Flow: MM: DS: Treasury Securities data was reported at 177.042 USD bn in Mar 2018. This records an increase from the previous number of 51.700 USD bn for Dec 2017. United States Assets: Flow: MM: DS: Treasury Securities 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 180.712 USD bn in Sep 2008 and a record low of -116.695 USD bn in Jun 2017. United States Assets: Flow: MM: DS: Treasury Securities data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s USA – Table US.AB024: Funds by Sector: Flows and Outstanding: Mutual Funds.

Australia Mutual Funds: Assets: Friendly Societies: Bonds Issued: State & Local Government data was reported at 65.000 AUD mn in Jun 2018. This records a decrease from the previous number of 66.000 AUD mn for Mar 2018. Australia Mutual Funds: Assets: Friendly Societies: Bonds Issued: State & Local Government data is updated quarterly, averaging 374.000 AUD mn from Jun 1988 (Median) to Jun 2018, with 119 observations. The data reached an all-time high of 2,396.000 AUD mn in Dec 1991 and a record low of 27.000 AUD mn in Dec 2013. Australia Mutual Funds: Assets: Friendly Societies: Bonds Issued: State & Local Government data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.Z014: Mutual Funds: Friendly Societies.

United States Assets: Flow: TS: Mutual Funds (MF) data was reported at 28.721 USD bn in Mar 2018. This records a decrease from the previous number of 62.477 USD bn for Dec 2017. United States Assets: Flow: TS: Mutual Funds (MF) data is updated quarterly, averaging 0.083 USD bn from Dec 1951 (Median) to Mar 2018, with 266 observations. The data reached an all-time high of 124.385 USD bn in Sep 2017 and a record low of -43.775 USD bn in Dec 2012. United States Assets: Flow: TS: Mutual Funds (MF) data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s USA – Table US.AB045: Funds by Instruments: Flows and Outstanding: Treasury Securities.

United States Assets: Flow: saar: TS: Mutual Funds (MF) data was reported at 114.884 USD bn in Mar 2018. This records a decrease from the previous number of 249.908 USD bn for Dec 2017. United States Assets: Flow: saar: TS: Mutual Funds (MF) data is updated quarterly, averaging 0.332 USD bn from Dec 1951 (Median) to Mar 2018, with 266 observations. The data reached an all-time high of 497.540 USD bn in Sep 2017 and a record low of -175.100 USD bn in Dec 2012. United States Assets: Flow: saar: TS: Mutual Funds (MF) data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s USA – Table US.AB045: Funds by Instruments: Flows and Outstanding: Treasury Securities.

Canada BNS: NI: Others: Mutual Fund, Underwriting on New Issues & Securities Commissions & Fees data was reported at 3,259,207.000 CAD th in Dec 2019. This records an increase from the previous number of 2,402,549.000 CAD th for Sep 2019. Canada BNS: NI: Others: Mutual Fund, Underwriting on New Issues & Securities Commissions & Fees data is updated quarterly, averaging 755,958.500 CAD th from Mar 1996 (Median) to Dec 2019, with 96 observations. The data reached an all-time high of 3,335,768.000 CAD th in Dec 2017 and a record low of 108,126.000 CAD th in Mar 1996. Canada BNS: NI: Others: Mutual Fund, Underwriting on New Issues & Securities Commissions & Fees data remains active status in CEIC and is reported by Office of the Superintendent of Financial Institutions Canada. The data is categorized under Global Database’s Canada – Table CA.KB037: Statement of Comprehensive Income: Domestic Banks: Bank of Nova Scotia. Source: Financial Data for Banks - Summary Income Statement (http://www.osfi-bsif.gc.ca/Eng/wt-ow/Pages/FINDAT.aspx), excluding any specific financial institutions data. Reproduced with permission from the Office of the Superintendent of Financial Institutions (OSFI), 2020 Disclaimer Notice: The reproduction of the information reproduced under permission by the Minister of Public Works and Government Services Canada in no way implies any official endorsement by the Office of the Superintendent of Financial Institutions Canada, nor of the Minister of Public Works and Government Services Canada, and does it imply any endorsement of the services offered by CEIC Data Company limited.

Australia Mutual Funds: Assets: Superannuation Funds: Bonds Issued: National Government data was reported at 22,714.000 AUD mn in Jun 2018. This records an increase from the previous number of 20,043.000 AUD mn for Mar 2018. Australia Mutual Funds: Assets: Superannuation Funds: Bonds Issued: National Government data is updated quarterly, averaging 10,818.000 AUD mn from Jun 1988 (Median) to Jun 2018, with 121 observations. The data reached an all-time high of 22,714.000 AUD mn in Jun 2018 and a record low of 2,534.000 AUD mn in Jun 1990. Australia Mutual Funds: Assets: Superannuation Funds: Bonds Issued: National Government data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.Z012: Mutual Funds: Superannuation Funds.

Australia Mutual Funds: Assets: Life Insurance: Bonds Issued: National Government data was reported at 5,331.000 AUD mn in Jun 2018. This records a decrease from the previous number of 5,911.000 AUD mn for Mar 2018. Australia Mutual Funds: Assets: Life Insurance: Bonds Issued: National Government data is updated quarterly, averaging 5,911.000 AUD mn from Jun 1988 (Median) to Jun 2018, with 121 observations. The data reached an all-time high of 13,904.000 AUD mn in Mar 1999 and a record low of 1,144.000 AUD mn in Jun 2009. Australia Mutual Funds: Assets: Life Insurance: Bonds Issued: National Government data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.Z011: Mutual Funds: Life Insurance Office.

Japan Assets: Flow: MA: DS: Local Government Securities data was reported at 0.000 JPY bn in Mar 2018. This records an increase from the previous number of -78.500 JPY bn for Dec 2017. Japan Assets: Flow: MA: DS: Local Government Securities data is updated quarterly, averaging 29.400 JPY bn from Mar 1998 (Median) to Mar 2018, with 81 observations. The data reached an all-time high of 538.100 JPY bn in Jun 1999 and a record low of -294.200 JPY bn in Dec 2010. Japan Assets: Flow: MA: DS: Local Government Securities data remains active status in CEIC and is reported by Bank of Japan. The data is categorized under Global Database’s Japan – Table JP.AB039: SNA08: Financial Institution: Insurance & Pension Funds: Insurance: Mutual Aid Insurance: Flow.