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Assets under management for 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 investments across markets.
According to Citi, as of March 2025, the US-listed ETF industry had total assets of about $10.4 trillion.
The Wall Street brokerage previously estimated that the industry’s AUM would reach $19 trillion by 2030 and $29 trillion by 2035.
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Citi said that by March 2025, the US-listed ETF industry would have total assets worth about $10.4 trillion. (Michael Nagle/Bloomberg via Getty Images)
It is now expected to exceed $40 trillion by 2035.
“While these estimates are more optimistic than our previous estimates, it still suggests that ETFs will be in a more mature stage of AUM growth as flow (organic) and performance (inorganic) drivers will be more balanced than in the past ten years,” Citi said.
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The brokerage said a large part of the growth could be driven by active ETFs, in which investments are expected to outperform their passive peers.
| anchor | 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 low costs. Many aim to outperform a benchmark or deliver a specific investment outcome, while passive ETFs seek to track an index and mirror its performance.
“Our base case expects actives’ market share of ETF AUM to double over ten years as these products gain a larger share of industry flows,” Citi said in a note Thursday.
Citigroup said other factors supporting growth within the industry include product innovation, easier ETF launch regulation, adoption of more sophisticated strategies and demand for flexible, tax-efficient investment solutions.
ETF Report: News and 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. equities have recorded inflows of more than $75.8 billion so far this year, building on the more than $1.1 trillion in inflows seen over the past two years, according to data from LSEG Lipper.
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Meanwhile, US-domiciled ETFs have recorded inflows of more than $435 billion so far this year, according to LSEG Lipper data.
