ETF Market Shatters Records with $1.4 Trillion Inflows and 1,000+ Launches in 2025
The US ETF market exploded in 2025, drawing $1.4 trillion in inflows—surpassing 2024's record—while witnessing over 1,000 new fund launches. Trading volume hit unprecedented levels as the S&P 500 notched its third consecutive year of double-digit gains, despite choppy Q4 performance.
Investors shrugged off concerns about AI capex and Fed rate uncertainty, funneling capital into both established and novel products. This historic surge echoes 2021's peak, though market participants remain wary of a potential repeat of 2022's 19% correction.
The rally defied expectations as tech giants' AI spending plans and interest rate ambiguity created headwinds. Yet demand proved relentless, with December flows accelerating despite sideways index movement since October.