ProCap Financial CEO Anthony Pompliano discusses agent research focused on managing finances on ‘The Claman Countdown’.
Assets under management of U.S. exchange-traded funds could more than double to $25 trillion by the end of this decade, Citigroup said Thursday, as investors look to the increasingly popular asset class for low-cost, diversified exposure to different markets.
According to Citi, the US-listed ETF sector’s total assets were approximately $10.4 trillion as of March 2025.
The Wall Street brokerage had previously forecast that the sector’s assets under management would reach $19 trillion by 2030 and $29 trillion by 2035.
GOLDMAN SACHS Completes Acquisition of Innovator Capital, Raising ETF ASSETS TO $90 Billion
Citi said total assets of the US-listed ETF sector were approximately $10.4 trillion as of March 2025. (Michael Nagle/Bloomberg via Getty Images)
It now expects more than $40 trillion by 2035.
“While these projections are more optimistic than our previous estimates, it still suggests that ETFs will be in a more mature phase of AUM growth as the flow (organic) and performance (inorganic) factors will be more balanced than the previous decade,” Citi said.
VANGUARD FUND EXCLUDES CHINA IN THE EMERGING MARKETS INVESTMENT GAME
Much of the growth could be driven by active ETFs, whose holdings are expected to outpace their passive peers, the brokerage said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| c | CITIGROUP INC. | 124.39 | -0.53 |
-0.42% |
Active ETFs are among the fastest growing segments of the ETF market, attracting investors with flexible strategies and lower costs. Many seek to outperform a benchmark or achieve a specific investment outcome, while passive ETFs attempt to track an index and mirror its performance.
“Our base case expects Active’s market share in ETF AUM to double within a decade as these products capture a larger share of industry flows,” Citi said in a note on Thursday.
Other factors supporting growth within the sector include product innovation, easier regulations for ETF launches, the adoption of more sophisticated strategies and demand for flexible, tax-efficient investment solutions, Citigroup said.
THE ETF REPORT: NEWS & ANALYSIS
Traders work on the floor of the New York Stock Exchange (NYSE) on April 4, 2025 in New York City. (Spencer Platt/Getty Images/Getty Images)
ETFs tracking U.S. stocks have recorded inflows of more than $75.8 billion so far this year, building on inflows worth more than $1.1 trillion over the past two years, data from LSEG Lipper shows.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Meanwhile, US-based ETFs have recorded more than $435 billion in inflows so far this year, according to data from LSEG Lipper.
