.png){kind=logo}
Citigroup now projects US ETF assets will reach $25 trillion by 2030 after the market climbed to $13.46 trillion at the end of 2025. The new target marks a steep rise from $10.4 trillion in March 2025 and lifts Citi’s earlier 2035 ceiling to above $40 trillion. Record inflows, broad demand, and rapid active ETF growth drove the revision.
The industry set a new record in 2025. US ETFs attracted $1.48 trillion in net new money during the year. That marked the strongest annual inflow total on record.
US equity ETFs led that advance. They pulled in more than $900 billion during 2025. As a result, equities remained the main driver of industry expansion.
Fixed-income ETFs also posted strong gains. Their assets reached $2.27 trillion by year-end 2025, up 26% from the prior year. Demand spread across government bonds and corporate credit.
The strongest momentum came from active ETFs. In early 2026, active strategies captured 42% of all ETF flows. Yet they held only 11% of total ETF assets.
During 2025, active ETFs drew between $459 billion and $475 billion in inflows. That amounted to roughly 32% of all net new ETF money. At the same time, more than 80% of new ETF launches used active strategies.
Their asset growth moved even faster. Active ETF assets posted a three-year compound annual growth rate above 59%. That pace ran nearly twice the broader industry rate.
Can active ETFs sustain that pace as their share of flows continues to outrun their share of assets?
Long-range projections point to further gains. Deloitte expects US active ETF assets to rise from $856 billion in 2024 to $11 trillion by 2035. By then, active products would hold 27% of US ETF assets.
Citi linked the ETF boom to several forces. Product innovation helped widen investor choice. Easier launch rules and demand for tax-efficient, low-cost wrappers also pulled money toward ETFs.
That shift showed clearly in 2025. During the first eleven months, mutual funds lost $551 billion while ETFs gained $1.24 trillion. In turn, the gap between the two widened to $1.79 trillion from $890 billion in 2024.
Other forecasts also point higher. PwC’s 2026 ETF survey projects global ETF assets will reach $35 trillion by 2030. It also names tokenization and 24/7 trading as future growth drivers, while the US keeps nearly 70% of global ETF assets.
Also Read: US Spot Crypto ETFs Record $151M in Inflows as Bitcoin Reclaims $71,000
Citi expects active ETFs to double their market share over the next decade. Flexible strategies, competitive fees, and a shift from 401(k) plans toward brokerage accounts support that view. The SEC’s approval of ETF share classes for mutual funds could add further momentum.
Still, some risks remain in view. TD Securities points to stretched equity valuations, sticky inflation, and policy uncertainty in 2026. Market performance also remains a key factor in total ETF assets.
That link already showed up in March 2026. US ETFs took in $104 billion that month, yet total assets fell 4.6% because markets moved lower. Even so, the structural case stayed intact as low fees, tax efficiency, and daily liquidity continued to draw investors.
Citigroup expects US ETF assets to reach $25 trillion by 2030, driven by record inflows, strong fixed-income demand, and rapid active ETF growth. The data also show ETFs taking share from mutual funds, pointing to a deeper shift in how investors choose low-cost and flexible market exposure.
