Global ETF Market Tops $19T; Active ETFs to Grow 20% with SPDR S&P 500 ETF Leading
Global ETF assets have topped $19 trillion as 96% of institutional investors plan to boost exposure over the next year and active ETFs ($1.92 trillion) could grow 20% annually. State Street SPDR S&P 500 ETF remains the largest and most liquid ETF as demand for income and low-volatility strategies rises.
1. Investor Survey Highlights Growth Plans
A survey of 325 institutional investors, advisors and wealth managers across the US, Europe and Greater China found global ETF assets have surpassed $19 trillion, with 96% planning to increase ETF allocations over the next 12 months despite geopolitical and policy uncertainty.
2. Active ETFs Gain Favor
Respondents expect the $1.92 trillion active ETF segment to grow at a 20% annual rate, with about two-thirds preferring active over passive strategies to manage market concentration and volatility, and ETF share-class expansions and mutual fund conversions poised to accelerate adoption.
3. Defensive & Income Strategies Rise
Allocation intentions show 33% of investors targeting dividend and income ETFs, 28% favoring sector or thematic equity strategies and 57% prioritizing low-volatility or defensive sector ETFs—such as utilities and consumer staples—for downside protection.
4. Private-Market ETFs Face Structural Hurdles
Nearly all participants expressed interest in private-market ETF wrappers for private equity (53%) and private credit (50%), but liquidity management, pricing issues and limited financial literacy remain key barriers before private-market ETFs can scale widely.