Morningstar projects that inflows into fixed income ETFs will exceed the record $120 billion collected in 2025, driven by rising yields and growing institutional adoption. The firm’s analysts note that average net annual inflows into U.S. bond ETFs climbed by 45% between 2022 and 2025, as retirement plans and defined-benefit funds shifted allocations toward liquid, cost-efficient products. Morningstar’s models forecast total assets in the segment could top $1.3 trillion by year-end, up from approximately $950 billion today. Key growth drivers include expansion in short-duration and floating-rate offerings, which accounted for nearly 30% of new launches last year, and an anticipated uptick in global sovereign debt inflows as investors seek higher real yields outside developed-market core bonds.

Morningstar has unveiled the Morningstar PitchBook GenAI 20 Index, a first-ever benchmark that delivers rules-based exposure to leading pure-play generative AI innovators across private and public markets. The index tracks 20 companies selected on criteria including revenue concentration in core AI technologies—machine learning, natural language processing and computer vision—and maintains continuity by carrying names through IPO events. Leveraging PitchBook’s database of more than 50,000 private equity and venture rounds, the index will be reconstituted semiannually to capture emerging players. Morningstar’s Head of Innovation, Sanjay Arya, emphasizes that transparent benchmarks are essential as GenAI investment jumped to $45 billion in 2025, representing a 60% increase year-over-year and underscoring the theme’s growing influence on global technology allocations.