How Has the Exchange Traded Fund Market Size Evolved in Recent Years?
The exchange traded fund market has seen considerable growth due to a variety of factors.
• The exchange traded fund market has seen exponential growth in recent years. It will grow from $19.34 billion in 2024 to $23.5 billion in 2025, at a CAGR of 21.5%.
This growth is fueled by the increasing embrace of passive investing, improved market liquidity, the rise of continuous trading, and the growth of equity ETFs.
What Are The Predictions for The Exchange Traded Fund Market in the Coming Years?
The exchange traded fund market is expected to maintain its strong growth trajectory in upcoming years.
• The exchange traded fund market is expected to grow exponentially, reaching $50.57 billion by 2029 with a CAGR of 21.1%.
The growth is driven by the expansion of bond ETFs, the complexity of regulations, easy access to diversified portfolios, and the shift towards e-commerce and digital transformation. Major trends include new ETF launches, technological advancements, online platform enhancements, robo-advisors, and increased reliance on digital technologies.
Which Drivers Are Accelerating Growth In The Exchange Traded Fund Market?
The growing total asset management is expected to spur the growth of the exchange-traded fund (ETF) market. Asset management involves handling investments for others and is driven by the desire for better returns and risk control. ETFs support asset management by offering diversification and low-cost solutions. In February 2024, State Street Corporation reported a record $11.6 trillion in global ETF assets, an increase of 15% from 2022, signaling the growing importance of ETFs in asset management.
What Are The Core Segments Of The Global Exchange Traded Fund Market?
The exchange traded fund market covered in this report is segmented –
1) By Investment Style: Passive Exchange Traded Funds (ETFs), Active Exchange Traded Funds (ETFs), Smart Beta Exchange Traded Funds (ETFs)
2) By Asset Class: Equity Exchange Traded Funds (ETFs), Fixed-Income Exchange Traded Funds (ETFs), Commodity Exchange Traded Funds (ETFs), Currency Exchange Traded Funds (ETFs), Real Estate Exchange Traded Funds (ETFs), Hybrid Exchange Traded Funds (ETFs)
3) By Bond Type: Government Bond Exchange Traded Funds (ETFs), Corporate Bond Exchange Traded Funds (ETFs), Municipal Bond Exchange Traded Funds (ETFs), High-Yield Bond Exchange Traded Funds (ETFs)
4) By Investor Type: Individual Investor, Institutional Investor
5) By Distribution Channel: Retail, Institutional
Subsegments:
1) By Passive Exchange Traded Funds (ETFs): Index-based ETFs, Sector-based ETFs, International and Global ETFs, Fixed-income ETFs, Commodity ETFs
2) By Active Exchange Traded Funds (ETFs): Actively Managed Equity ETFs, Actively Managed Bond ETFs, Actively Managed Multi-asset ETFs, Actively Managed Thematic ETFs, Actively Managed Sector ETFs
3) By Smart Beta Exchange Traded Funds (ETFs): Factor-based ETFs (e.g., value, growth, momentum), Dividend-focused ETFs, Volatility-focused ETFs, Low Volatility ETFs, Equal-weighted ETFs
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What New Trends Are Influencing The Exchange Traded Fund Market?
Companies in the exchange-traded fund market are launching ETFs focused on electric vehicles (EVs) and the new-age automotive segment to capitalize on emerging trends. These ETFs target companies in the rapidly evolving automotive industry. For example, in June 2024, Mirae Asset Financial Group launched the Mirae Asset Nifty EV and New Age Automotive ETF, India’s first ETF focusing on EVs and new-age automotive sectors. It tracks the Nifty EV and New Age Automotive Total Return Index.
Who Are the Key Players In The Exchange Traded Fund Market?
Major companies operating in the exchange traded fund market are:
• JPMorgan Chase & Co.
• Bank of America
• Wells Fargo & Company
• BNP Paribas SA
• Morgan Stanley
• The Goldman Sachs Group Inc.
• UBS Group AG
• Barclays PLC
• FMR LLC
• Hartford Funds
• The Charles Schwab Corp.
• BlackRock Inc.
• State Street Corporation
• The Vanguard Group Inc.
• Blackstone Inc.
• T. Rowe Price
• Invesco Ltd.
• Morningstar Inc.
• Abrdn plc
• BMO Global Asset Management
• Virtus Investment Partners
• VictoryShares (Victory Capital)
• WisdomTree Inc.
• Tata Mutual Fund
• Van Eck Associates Corp
What Are The Regional Insights Into The Exchange Traded Fund Market?
North America was the largest region in the exchange traded fund market in 2023. The regions covered in the exchange traded fund market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
