From Yahoo Finance: 2025-05-14 14:30:00

The global ETF market is set to hit $2 trillion by 2025, driven by active management and new asset categories. Active ETF strategies account for 32% of flows, particularly in fixed income, with global active fixed-income ETF assets at $350 billion in 2024, projected to double by 2026.

Investors are turning to active ETFs for real-time adjustments amid changing market conditions. In the Asia-Pacific region, active fixed-income ETFs grew 33% in 2024, while European inflows reached $2 billion. High-yield bond ETFs hold $118 billion, but CLO ETFs are rapidly expanding and expected to surpass traditional options by 2026.

Specialized fixed-income products like high-yield bond and CLO ETFs are gaining momentum, with digital assets and thematic investments also seeing significant growth. Global crypto ETF assets surged 255% in 2024, and AI-themed ETFs collected $2.4 billion in the first two months of 2025, with a notable generational divide in adoption patterns.

Younger investors are embracing newer ETF categories, with 69% of millennials investing in non-traditional assets compared to 46% of baby boomers. Eight in 10 advisors now see evolving ETF categories as valuable for long-term planning and retirement strategies, signaling a fundamental shift in portfolio construction.



Read more at Yahoo Finance: Active ETFs Surge in $2T ETF Market Boom: State Street