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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 seek the popular asset class to gain low-cost, diversified exposure to all markets.
As of March 2025, the total assets of the US-listed ETF sector stand at about $10.4 trillion, according to Citi.
The Wall Street brokerage had previously predicted that the industry’s AUM would reach $19 trillion by 2030 and $29 trillion by 2035.
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Citi said that as of March 2025, the total assets of the US-listed ETF industry stand at about $10.4 trillion. (Michael Nagle/Bloomberg via Getty Images)
It now expects more than $40 trillion by 2035.
“Although this projection is more optimistic than our previous estimates, it still suggests that ETFs will be in a mature phase of AUM growth as the drivers of flow (live) and performance (non-live) will be more equal than a decade ago,” said Citi.
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Much of the growth could be driven by active ETFs, investments expected to outperform their passive peers, the broker said.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| C | Company CITIGROUP INC. | 124.92 | +1.43 |
+1.16% |
Active ETFs are among the fastest growing segments of the ETF market, attracting investors with flexible strategies and low costs. Many aim to do better than benchmark or deliver a specific investment result, while passive ETFs seek to track an index and mimic its performance.
“Our foundation expects Active’s market share of ETF AUM to double in ten years as these products gain (a) greater share of industry flows,” Citi said in a note Thursday.
Other factors supporting growth within the industry include product innovation, simplified ETF launch management, adoption of more advanced strategies, and demand for flexible, tax-free investment solutions, Citigroup said.
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Traders work on the floor of the New York Stock Exchange (NYSE) on April 4, 2025, in New York City. (Photos by Spencer Platt/Getty/Getty Images)
ETFs tracking US stocks have recorded inflows of more than $75.8 billion so far this year, building on inflows worth more than $1.1 trillion seen in the past two years, according to data from LSEG Lipper.
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Meanwhile, US-owned ETFs have recorded inflows worth more than $435 billion so far this year, according to LSEG Lipper data.
