The ETF market started a record in 2025. Some experts therefore expect up to 1,000 new ETFs this year. In addition, investors are increasingly relying on European equity funds.
• ETF market starts in 2025 with a record
• Experts consider 1,000 new ETFs to be possible
• focus on European equity funds
Record start: ETF market flourishes
Despite the turbulence on the stock markets and the ongoing discussions about tariffs, the ETF industry recorded a record start to 2025. According to Bloomberg, more than 230 new ETFs were launched in the USA in the first quarter – the highest value for a first quarter since 2015. For comparison: In the entire first quarter of 2024 there were only 174 new products.
Issuers, including a growing number of asset managers and research agencies, apparently see great potential in the ETF market, which increasingly attracts capital of institutional and private investors. If the current pace of more than 75 new products lasts per month, more than 900 new ETFs could appear by the end of the year. Some experts, including Amrita Nandakumar by Vident Asset Management and Athanasios Psarofagis from Bloomberg Intelligence, even consider 1,000 new index funds possible this year.
“The increasing use of ETFs by financial advisor is the most important factor for the dynamics of new ETF structure,” said Amrita Nandakumar according to Bloomberg. “Financial advisors and private investors choose ETFs as a preferred form of investment with their money.
More than 200 of the 233 new ETFs are actively managed – a sign of strong growth in this segment, explains Bloomberg. The total assets of actively managed ETFs in the United States recently exceeded the brand of a trillion US dollar. Experts expect active ETFs 2025 to generate around $ 116 billion in new tributaries, even if passive products continue to retain the larger market share.
If the US stock exchange supervision SEC in the future approves ETF share classes for existing investment funds, the boom could also increase further. Many of the new funds are strongly geared towards trade and market volatility. ETFs are particularly popular with derivatives or leverage products that have high chances of return, but also increased risk of loss – especially for inexperienced investors.
Risk of new funds
Despite the growth, however, industry veterans also warn for caution. Already 40 funds had to close again this year due to a lack of interest.
Joe Grogan von Wisdomtree warned that it is particularly difficult to place new funds successfully today: “Many people put up funds in a vacant space – they believe that it is needed and saying everyone should buy. […] It is incredibly difficult today to put on a fund. And this is not only due to the regulatory hurdles, etc.: It is difficult to move someone to buy a fund. “Despite its rapid growth, the ETF market remains an increasingly competitive environment.
Record inflow for European ETFs
Another record this year was able to record stock exchange -traded funds with a focus on European shares. As Reuters reports, investors had already invested $ 10.6 billion in the first quarter of 2025 in the same ETFs. This corresponds to the seven times the inflows compared to the previous year, as current Blackrock data data show.
The strong demand for European ETFs marks a clear turnaround: since the beginning of the Russia Ukraine War in February 2022, these funds have recorded net drains of $ 6.4 billion.
Despite increasing uncertainty on the markets, triggered by customs threats and the economic policy of US President Donald Trump, European shares are currently considered more stable alternative. Tim Seymour, founder and Chief Investment Officer from Seymour Asset Management, described the new trend as “Make Europe Great Again” (mega).
Editor finance.net
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