In 2025, the ETF industry saw record-breaking achievements with close to $1.4 trillion in inflows, nearly 1,100 new launches, and record trading volumes. The Vanguard S&P 500 ETF alone pulled in over $145 billion, while the iShares Bitcoin Trust added more than $25 billion in assets despite being down about 10% for the year.

Some experts are concerned about the ETF industry having too many strategies available, particularly as mega-cap tech stocks surge. NVIDIA alone accounts for about 7.6% of the S&P 500 Index, leading to worries about market top-heaviness. The “Mag 7” conglomerates collectively acquired about 850 companies, with Google and Microsoft leading the acquisitions race.

About 85% of new ETF launches in 2025 were active ETFs, many using leverage or other derivatives. There was also a surge in single-stock ETF launches and the debut of many crypto ETFs. The year was marked by various milestones and achievements, setting the stage for an interesting outlook for 2026 in the ETF industry.

With the increasing interest in ETFs, investors are questioning how diversified they should be outside of the “Magnificent 7” mega-cap tech stocks. Some are considering buying private asset ETFs as part of their diversification strategy. The ETF landscape is evolving, and investors are exploring new opportunities to boost their portfolios.

Looking ahead to 2026, investors are advised to watch for certain ETFs on their radar for potential growth and opportunities. The ETF industry continues to innovate and offer a wide range of strategies for investors to consider. Stay tuned for more insights and updates on the ETF landscape in the coming year.

Read more at Nasdaq: The Biggest ETF Stories of 2025 and the 2026 Outlook