AUM, flows and more
- U.S. ETF assets increased by 4.7% in June 2025, reaching a total of $11.6 trillion.
- ETF flows remained strong in June, totaling over $101 billion, with about 59% directed toward equities and 27% toward fixed income. For the year, ETF flows totaled about $545 billion.
Active spotlight
- Flows totaled about $32 billion in June 2025, with about 62% going into equities and about 33% into fixed income. Total assets ended the month at $1.15 trillion.
- Over 37% of ETF flows in 2025 have gone into active strategies.
- 91 active ETFs were launched in June. Active ETFs represent 84% of total ETF launches in 2025.
ETFs: Defying volatility and setting new records
Despite a volatile start to the year, the ETF market has shown resilience and is on pace for another record-breaking year. Active ETFs have been a stalwart—dominating launches and taking in an increasing share of flows. Here are three key takeaways from the first half:
- Strength in ETF flows, especially in the active space: ETF flows totaled $545 billion, compared to $404 billion at the same point last year. Notably, the percentage of flows into active ETFs increased to 37% of total ETF flows, up from 26% last year. Active ETFs still only represent about 10% of ETF assets.
- Active ETF launches continue to surge: Over 450 ETFs launched in the first half, putting the full-year estimate at more than 900 ETFs—well above last year’s record of just over 700. Nearly 85% of this year’s launches have been active, spanning traditional categories as well as buffer and leveraged products. New firms continue to enter the market, recognizing the demand for ETFs and how they can use these vehicles to distribute their strategies. However, not every ETF is guaranteed to succeed, as success depends on investment performance, distribution strength and asset size. Some ETFs closed in the first half, and others may share the same fate in the second half.
- Diversification is key, and ETFs reflect investor sentiment: Investors increasingly use ETFs to tactically allocate and diversify their portfolios, which is crucial with volatility likely to remain elevated.
Guide to ETFs featured slide of the month (slide 12)
Active ETFs are bucking the passive trend
Passive investing has many merits, but active management is thriving. In volatile periods like those seen this year, active managers have opportunities to generate excess alpha and deliver meaningful value. Increasingly, they’re doing so through active ETFs, which are reshaping the active management landscape. As this slide illustrates, flows into active ETFs have accelerated since the 2019 ETF rule, while active mutual funds have continued to record outflows. This shift highlights a broader trend of investors preferring the ETF structure for its liquidity, transparency and cost-effectiveness over traditional mutual funds.