Exchange Traded Funds Market Overview
The global Exchange Traded Funds
Market is projected to reach US$ 94.2 Trillion by 2035 from US$ 20.1 Trillion
in 2025. The market is expected to register a CAGR of 21.4% during
2025–2035. This growth is primarily driven by increasing investor demand for
low-cost, diversified, and transparent investment solutions.
ETFs are traded funds listed on
stock exchanges similar to individual stocks and are intended to follow the
direction of a specific index, sector, commodity, or asset class. Global market
size of the ETFs market continues to grow owing to increased interest by both
retail and institutional investors in efficient portfolio diversification and
real-time trading potential. Based on the latest market analysis, the market is
estimated to grow at double-digit levels during the forecast period, driven by
technological innovation, changing investor needs, and financial innovation.
Emerging market trends like the popularity of thematic investing, demand for
Environmental, Social, and Governance (ESG) ETFs, and the development of
actively managed and semi-transparent ETFs are transforming the landscape of
the market. One of the central drivers of market growth is the
cost-effectiveness of ETFs versus traditional mutual funds. With fewer
management charges and tax benefits, ETFs are attractive to a wide variety of investors.
In addition, the rise of digital investment platforms and the use of robo-advisors have promoted the use of
ETFs, thereby growing their popularity, especially in the younger and novice
investors demographic. Technological integration, including tokenization and
the use of blockchains, will also change the ETF infrastructure landscape by
promoting transparency and the efficiency of settlements.
Exchange Traded Funds Market
Drivers And Opportunities
Growing Preference For Low-Cost
And Transparent Investment Options Is Anticipated To Lift The Exchange Traded
Funds Market During The Forecast Period
The significant drivers of the
global ETF market is the growing demand from investors for low-cost,
transparent, and efficient investment products. Mutual funds traditionally
carry high management charges and no real-time pricing, and these are becoming
increasingly unacceptable during a time when cost-effectiveness and asset
control are the top concerns of investors. ETFs, on the other hand, have a
lower expense ratio, a factor that appeals both to retail and institutional
investors looking to maximize returns by keeping investment costs low. ETFs
also facilitate investors to achieve exposure to a large market index, sector,
or asset class in one trade, and typically at a fraction of the cost of
creating a similar portfolio using single stocks or bonds. ETFs trade in the
same manner as stocks, and hence, transparency regarding pricing and
constituents is available, which is a major factor in building investor trust
and decision support. Post-Pandemia, the new economy, in which investors are
increasingly risk-averse and cost-conscious, intensified the phenomenon
further. With growing numbers of investors and robo-advisory platatforms using
ETFs as part of a core portfolio, the market sees the phenomenon of mass use of
the market, and as more and more investors become financially literate,
fee-conscious investing becomes mainstream, and low-cost, transparent products
like ETFs will drive the market to grow strongly.
Expansion Of Thematic And ESG-Based
ETFs Is A Vital Driver For Influencing The Growth Of The Global Exchange Traded
Funds Market
The rapid rise of thematic
and Environmental, Social, and Governance (ESG)-based ETFs is another principal
growth driver in the global market. Today's investors not only want returns but
also want to align portfolios with values and longstanding global trends.
Thematic ETFs, which target up-and-coming sectors like artificial intelligence,
clean energy, electric vehicles, and cybersecurity, provide
precise exposure to growth-oriented sectors. These ETFs resonate especially
with tech-forward and young investors looking to seize future-defining
innovations. In the same way, ESG ETFs enable investors to embrace
sustainability initiatives while preserving diversified exposure and potential
performance. Asset managers are reacting by launching a diverse set of ETFs
that use ESG screens or exclusively target companies that have high ESG scores.
Regulatory bodies in the primary markets, the European Union and United States,
are also promoting transparency and uniformed ESG reporting, further upholding
the legitimacy of ESG investing. While climate change and social responsibility
are top of mind globally, thematic and ESG-based ETFs are becoming favored
instruments by which investors are able to express their convictions. This
trend has resulted in a spike in assets under management in these ETFs and will
propel ongoing innovation and growth in the broader ETF market.
Integration Of Blockchain And Tokenized
ETFs Is Poised To Create Significant Opportunities In The Global Exchange
Traded Funds Market
The integration of
blockchain technology and the emergence of tokenized ETFs represent a
transformative opportunity in the ETF market’s future. Blockchain offers
significant advantages in terms of transparency, transaction speed, security,
and cost-efficiency. With ETFs already being favored for their simplicity and
liquidity, combining these features with decentralized ledger technology can
further streamline settlement processes, reduce intermediary costs, and improve
compliance through real-time auditing and smart contracts. Tokenized ETFs,
which represent fractional shares of ETF assets on a blockchain, are
particularly exciting as they can increase market accessibility by allowing
investors to purchase smaller denominations. This is particularly appealing in
regions with limited capital market infrastructure or for younger investors
looking for flexible, low-barrier entry points into diversified portfolios. In
addition, blockchain-enabled ETFs can facilitate 24/7 trading across borders,
eliminating time-zone and exchange-related constraints that exist with
traditional ETFs. Major financial institutions and fintech startups are already
exploring these models, suggesting significant potential for disruption. As
regulatory clarity around blockchain and digital assets improves, the
integration of tokenization in ETFs could redefine how assets are issued,
traded, and managed, offering a futuristic growth pathway for the global ETF
market.
Exchange Traded Funds Market Scope
Report
Attributes |
Description |
Market Size in 2025 |
USD 20.1 Trillion |
Market
Forecast in 2035 |
USD 24.85
Trillion |
CAGR % 2025-2035 |
21.4% |
Base
Year |
2024 |
Historic Data |
2020-2024 |
Forecast
Period |
2025-2035 |
Report USP
|
Production, Consumption, company
share, company heatmap, company production capacity, growth factors and more |
Segments
Covered |
|
Regional Scope |
|
Country
Scope |
|
Exchange Traded Funds Market Report Segmentation Analysis
The Global Exchange Traded Funds
Market industry analysis is segmented into By Type, By Investment Style, By
Sector, and by Region.
The Fixed Income ETF Segment Is Anticipated To Hold The Highest Share
Of The Global Exchange Traded Funds Market During The Projected Timeframe.
By Type, the Global Exchange
Traded Funds (ETFs) Market is diversified under Fixed Income ETF, Equity ETF,
Commodity ETF, Real Estate ETF, and Others. In 2025, the Fixed Income ETF
category leads the market, accounting for the 32.0% of market share due to its
increased popularity among risk-averse investors who seek stable income and
preservation of capital. Fixed income ETFs provide exposure to debt instruments
and bonds while keeping the flexibility and liquidity advantages of the ETF
structures. These products have become more popular as they present a low-cost
method of accessing diversified bond portfolios, including corporate,
municipal, and government bonds.
The Active ETFs Segment Is Anticipated To Hold The Highest Share Of The
Market Over The Forecast Period.
Based on investment style, market
is comprises Passive ETFs, Active ETFs, and Smart Beta ETFs. Active ETFs are
the leading segment supported by increased investor appetite for flexible,
actively managed investment products. In contrast to traditional passive ETFs,
which follow a given index, active ETFs are managed by portfolio managers who
update their investment decisions in real time on the basis of market
fluctuations, economic data, and the relative performances of the assets. This
active style of management finds support in investors' desire to gain improved
returns during market fluctuations or changes in the economy.
The Energy ETFs Segment Dominated The Market In 2025 And Is Predicted
To Grow At The Highest CAGR Over The Forecast Period.
Based on sector, the Global
Exchange Traded Funds (ETFs) market is classified under Technology ETFs,
Healthcare ETFs, Financial ETFs, Energy ETFs, and Consumer Discretionary ETFs.
Of these, the Energy ETFs sector leads due to increased investor interest in
the energy sector in the context of global changes in the price of commodities,
energy consumption, and geopolitical events. Energy ETFs offer diversified
exposure to oil, gas, renewable power, and related infrastructure stocks,
enabling investors to benefit from traditional and emerging trends in theenergy
space.
The following segments are part of an in-depth analysis of the global exchange
traded funds market:
Market
Segments |
|
By Type |
|
By Investment Style |
|
By Sector |
|
Exchange Traded Funds
Market Share Analysis by Region
North America Is
Projected To Hold The Largest Share Of The Global Exchange Traded Funds Market Over
The Forecast Period.
North
America dominates the market in the Global Exchange Traded Funds (ETFs) market
in 2025, holding the largest market share of 42.5%. This regional dominance of
North America is mainly due to the maturity and depth of the United States' and
Canada's financial markets, in which the ETFs have found wide acceptance both
amongst retail and institutional investors. The U.S., in particular, is
inhabited by some of the largest and most diverse ETF sponsors globally, such
as the likes of BlackRock (iShares), Vanguard, and State Street Global
Advisors, which operate a diverse set of products catering to different
investment strategies, asset types, and risk tolerances. High-quality
regulatory framework, high investor awareness, and highly developed trading
infrastructure have also gone a long way in boosting the popularity of the ETFs
in North America and proliferating the market to date. Further, the increasing
demand for low-cost, passive funds has also added fuel to the transition of
flows away from mutual funds and, more prominently, with investors looking in
growing numbers to ETFs, which also provides transparency, tax efficiency, and
flexibility of trading on a real-time basis. The popularity of thematic and
environmental, social, and governance (ESG)-centered ETFs, and also new
products like actively managed ETFs and funds denominated in cryptocurrencies,
is also further proliferating the market landscape.
In addition,
the Asian-Pacific region is expected to account for the largest growth rate in
the global ETF market in the forecast period due to growing financial awareness
and increasing equity market participation. Emerging nations including China,
India, and the nations in Southeast Asia are experiencing high growth in the
use of ETFs due to investors' demand for low-cost, diversified investment
products.
Exchange Traded Funds Market Competition Landscape
Analysis
To strengthen their market
position and drive growth, industry players are adopting a range of strategic
initiatives. These include forming strategic alliances and partnerships to
combine expertise, pursuing mergers and acquisitions to expand capabilities,
and launching innovative products and services to meet evolving demands.
Additionally, companies are focusing on geographical expansion to tap into new
markets while leveraging ETF market forecasts to inform investment decisions
and optimize their market strategies. Together, these approaches enable
organizations to enhance their competitive edge and solidify their industry
presence.
Global Exchange
Traded Funds Market Recent Developments News:
In November 2021, Goldman Sachs Asset
Management has unveiled three new actively managed, thematic equity ETFs
designed to capitalize on transformative global trends. The newly launched
funds include the Goldman Sachs Future Consumer Equity ETF (GBUY), targeting
disruptive shifts in retail and consumer behaviour.
In June 2022, State Street has entered
into a strategic partnership with FundGuard, a leading provider of cloud-native
investment accounting and fund accounting solutions, to deliver advanced
accounting capabilities for its State Street Alpha platform. This collaboration is designed to enhance State Street Alpha’s
investment accounting and contingency net asset value (NAV) solutions, offering
clients greater accuracy, automation, and scalability.
The Global Exchange Traded Funds Market is dominated by a few large companies, such as
·
Allianz SE
·
Amundi Austria GmbH
·
Betterment LLC
·
BlackRock Inc.
·
Blackstone Inc
·
FMR LLC
·
Invesco Ltd.
·
JPMorgan Chase and Co.
·
Mirae Asset Securities Co. Ltd.
·
Morgan Stanley
·
Morningstar Inc.
·
State Street Corp.
·
The Bank of New York Mellon Corp.
·
The Charles Schwab Corp.
·
The Goldman Sachs Group Inc.
·
Others
1.
Global
Exchange Traded Funds Market Introduction and Market Overview
1.1. Objectives of the Study
1.2. Global Exchange Traded Funds
Market Scope and Market Estimation
1.2.1. Global Exchange Traded Funds Overall
Market Size (US$ Bn), Market CAGR (%), Market forecast (2025 - 2035)
1.2.2. Global Exchange Traded Funds
Market Revenue Share (%) and Growth Rate (Y-o-Y) from 2020 - 2035
1.3. Market Segmentation
1.3.1. Type of Global Exchange Traded
Funds Market
1.3.2. Investment Style of Global Exchange
Traded Funds Market
1.3.3. Sector of Global Exchange Traded
Funds Market
1.3.4. Region of Global Exchange Traded
Funds Market
2.
Executive Summary
2.1. Demand Side Trends
2.2. Key Market Trends
2.3. Market Demand (US$ Bn) Analysis
2020 – 2024 and Forecast, 2025 – 2035
2.4. Demand and Opportunity
Assessment
2.5. Market Dynamics
2.5.1. Drivers
2.5.2. Limitations
2.5.3. Opportunities
2.5.4. Impact Analysis of Drivers and
Restraints
2.6. Key Product/Brand Analysis
2.7. Technological Advancements
2.8. Key Developments
2.9. Porter’s Five Forces Analysis
2.9.1. Bargaining Power of Suppliers
2.9.2. Bargaining Power of Buyers
2.9.3. Threat of Substitutes
2.9.4. Threat of New Entrants
2.9.5. Competitive Rivalry
2.10. PEST Analysis
2.10.1. Political Factors
2.10.2. Economic Factors
2.10.3. Social Factors
2.10.4. Technology Factors
2.11. Insights on Cost-effectiveness
of Exchange Traded Funds
2.12. Key Regulation
3.
Global Exchange Traded Funds Market Estimates & Historical Trend Analysis (2020 - 2024)
4.
Global Exchange Traded Funds
Market Estimates & Forecast Trend
Analysis, by Type
4.1. Global Exchange Traded Funds
Market Revenue (US$ Bn) Estimates and Forecasts, by Type, 2020 - 2035
4.1.1. Fixed income ETF
4.1.2. Equity ETF
4.1.3. Commodity ETF
4.1.4. Real estate ETF
4.1.5. Others
5.
Global Exchange Traded Funds
Market Estimates & Forecast Trend
Analysis, by Investment Style
5.1. Global Exchange Traded Funds
Market Revenue (US$ Bn) Estimates and Forecasts, by Investment Style, 2020 -
2035
5.1.1. Passive ETFs
5.1.2. Active ETFs
5.1.3. Smart Beta ETFs
6.
Global Exchange Traded Funds
Market Estimates & Forecast Trend
Analysis, by Sector
6.1. Global Exchange Traded Funds
Market Revenue (US$ Bn) Estimates and Forecasts, by Sector, 2020 - 2035
6.1.1. Technology ETFs
6.1.2. Healthcare ETFs
6.1.3. Financial ETFs
6.1.4. Energy ETFs
6.1.5. Consumer Discretionary ETFs
7.
Global Exchange Traded Funds
Market Estimates & Forecast Trend
Analysis, by Region
7.1. Global Exchange Traded Funds
Market Revenue (US$ Bn) Estimates and Forecasts, by Region, 2020 - 2035
7.1.1. North America
7.1.2. Europe
7.1.3. Asia Pacific
7.1.4. Middle East & Africa
7.1.5. Latin America
8.
North
America Exchange Traded Funds Market: Estimates & Forecast Trend Analysis
8.1.
North
America Exchange Traded Funds Market Assessments & Key Findings
8.1.1. North America Exchange Traded
Funds Market Introduction
8.1.2. North America Exchange Traded
Funds Market Size Estimates and Forecast (US$ Billion) (2020 - 2035)
8.1.2.1. By Type
8.1.2.2. By Investment Style
8.1.2.3. By Sector
8.1.2.4. By Country
8.1.2.4.1. The U.S.
8.1.2.4.2. Canada
8.1.2.4.3. Mexico
9.
Western
Europe Exchange Traded Funds Market: Estimates & Forecast Trend Analysis
9.1. Western Europe Exchange Traded
Funds Market Assessments & Key Findings
9.1.1. Western Europe Exchange Traded
Funds Market Introduction
9.1.2. Western Europe Exchange Traded
Funds Market Size Estimates and Forecast (US$ Billion) (2020 - 2035)
9.1.2.1. By Type
9.1.2.2. By Investment Style
9.1.2.3. By Sector
9.1.2.4. By Country
9.1.2.4.1.
Germany
9.1.2.4.2.
Italy
9.1.2.4.3.
U.K.
9.1.2.4.4.
France
9.1.2.4.5.
Spain
9.1.2.4.6.
Benelux
9.1.2.4.7.
Nordics
9.1.2.4.8. Rest
of W. Europe
10. Eastern Europe Exchange
Traded Funds Market: Estimates &
Forecast Trend Analysis
10.1. Eastern Europe Exchange Traded
Funds Market Assessments & Key Findings
10.1.1. Eastern Europe Exchange Traded
Funds Market Introduction
10.1.2. Eastern Europe Exchange Traded
Funds Market Size Estimates and Forecast (US$ Billion) (2020 - 2035)
10.1.2.1. By Type
10.1.2.2. By Investment Style
10.1.2.3. By Sector
10.1.2.4. By Country
10.1.2.4.1.
Russia
10.1.2.4.2.
Hungary
10.1.2.4.3.
Poland
10.1.2.4.4.
Balkan & Baltics
10.1.2.4.5. Rest of E. Europe
11. Asia Pacific Exchange
Traded Funds Market: Estimates &
Forecast Trend Analysis
11.1. Asia Pacific Market Assessments
& Key Findings
11.1.1. Asia Pacific Exchange Traded
Funds Market Introduction
11.1.2. Asia Pacific Exchange Traded
Funds Market Size Estimates and Forecast (US$ Billion) (2020 - 2035)
11.1.2.1. By Type
11.1.2.2. By Investment Style
11.1.2.3. By Sector
11.1.2.4. By Country
11.1.2.4.1. China
11.1.2.4.2. Japan
11.1.2.4.3. India
11.1.2.4.4. Australia & New Zealand
11.1.2.4.5. South Korea
11.1.2.4.6. ASEAN
11.1.2.4.7. Rest of Asia Pacific
12. Middle East & Africa Exchange
Traded Funds Market: Estimates &
Forecast Trend Analysis
12.1. Middle East & Africa Market
Assessments & Key Findings
12.1.1. Middle
East & Africa Exchange
Traded Funds Market Introduction
12.1.2. Middle
East & Africa Exchange
Traded Funds Market Size Estimates and Forecast (US$ Billion) (2020 - 2035)
12.1.2.1. By Type
12.1.2.2. By Investment Style
12.1.2.3. By Sector
12.1.2.4. By Country
12.1.2.4.1. UAE
12.1.2.4.2. Saudi
Arabia
12.1.2.4.3. Turkey
12.1.2.4.4. South
Africa
12.1.2.4.5. Rest of
MEA
13. Latin America
Exchange Traded Funds Market: Estimates
& Forecast Trend Analysis
13.1. Latin America Market Assessments
& Key Findings
13.1.1. Latin America Exchange Traded
Funds Market Introduction
13.1.2. Latin America Exchange Traded
Funds Market Size Estimates and Forecast (US$ Billion) (2020 - 2035)
13.1.2.1. By Type
13.1.2.2. By Investment Style
13.1.2.3. By Sector
13.1.2.4. By Country
13.1.2.4.1. Brazil
13.1.2.4.2. Argentina
13.1.2.4.3. Colombia
13.1.2.4.4. Rest of
LATAM
14. Country Wise Market:
Introduction
15. Competition Landscape
15.1. Global Exchange Traded Funds
Market Product Mapping
15.2. Global Exchange Traded Funds
Market Concentration Analysis, by Leading Players / Innovators / Emerging
Players / New Entrants
15.3. Global Exchange Traded Funds
Market Tier Structure Analysis
15.4. Global Exchange Traded Funds
Market Concentration & Company Market Shares (%) Analysis, 2024
16. Company Profiles
16.1.
Allianz SE
16.1.1. Company Overview & Key Stats
16.1.2. Financial Performance & KPIs
16.1.3. Product Portfolio
16.1.4. SWOT Analysis
16.1.5. Business Strategy & Recent
Developments
* Similar details would be provided
for all the players mentioned below
16.2. Amundi Austria
GmbH
16.3. Betterment LLC
16.4. BlackRock Inc.
16.5. Blackstone Inc
16.6. FMR LLC
16.7. Invesco Ltd.
16.8. JPMorgan Chase
and Co.
16.9. Mirae Asset
Securities Co. Ltd.
16.10. Morgan Stanley
16.11. Morningstar
Inc.
16.12. State Street
Corp.
16.13. The Bank of
New York Mellon Corp.
16.14. The Charles
Schwab Corp.
16.15. The Goldman
Sachs Group Inc.
16.16. Others
17. Research
Methodology
17.1. External Transportations /
Databases
17.2. Internal Proprietary Database
17.3. Primary Research
17.4. Secondary Research
17.5. Assumptions
17.6. Limitations
17.7. Report FAQs
18. Research
Findings & Conclusion
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One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).
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Conclusion
The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2033.
Exchange Traded Funds Market was valued at USD 20.1 Trillion in 2025.
Exchange Traded Funds Market size will increase at approximate CAGR of 21.4% during the forecasted period.
Major companies operating within the market are Allianz SE, Amundi Austria GmbH, Betterment LLC, BlackRock Inc., Blackstone Inc., and others.
North America dominates the market with an active share of 42.5%.
Only Three Thousand Four Hundred Ninety Nine US dollar
Only Four Thousand Four Hundred Ninety Nine US dollar
Only Five Thousand Four Hundred Ninety Nine US dollar