ETFs are taking in record flows as adoption accelerates

Exchange-traded funds drew large net inflows in 2025, with about US$1.5 trillion added in U.S. ETF assets (bringing U.S. ETF assets above US$13 trillion) and Canadian ETF inflows of $122 billion, a 62% increase from 2024.

Exchange-traded funds saw a brisk pace of asset growth in 2025, driven by a broader array of products and continuing interest from retail and institutional investors. ETFs trade on exchanges during the day and often carry lower management costs than many mutual funds. The product range now includes passive index trackers, actively managed funds, leveraged funds, commodity and fixed-income ETFs, crypto ETFs, and multi-asset allocation funds. Industry observers note that the ETF market is expanding beyond simple index-tracking products as providers offer more complex strategies. Key figures and trends: - U.S. ETF assets increased by about US$1.5 trillion in 2025, exceeding US$13 trillion. - Canadian ETF inflows totaled $122 billion in 2025, a 62% acceleration versus 2024, according to TD Securities. - U.S. mutual funds saw roughly US$550 billion of outflows in 2025 through November, per the Investment Company Institute. - ETF types now include passive, active, leveraged, commodity, fixed-income and crypto products, and asset-allocation funds that mimic balanced portfolios. - Assets tied to U.S. leveraged ETFs have doubled over the past two years, highlighting faster growth in some speculative segments. - The first ETF was launched in Canada in 1990. Summary: ETF inflows in 2025 widened the asset gap between exchange-traded funds and traditional mutual funds and reflected growing use of varied ETF structures by different kinds of investors. Undetermined at this time.