Exchange Traded Fund Market Report 2026

The exchange traded fund market size has grown exponentially in recent years. It will grow from $23.35 billion in 2025 to $28.26 billion in 2026 at a compound annual growth rate (CAGR) of 21%. The growth in the historic period can be attributed to rising demand for diversified investment products, growth in equity market participation, increasing popularity of passive investing strategies, expansion of global stock exchanges, improved regulatory frameworks for exchange traded products.

The exchange traded fund market size is expected to see rapid growth in the next few years. It will grow to $57.92 billion in 2030 at a compound annual growth rate (CAGR) of 19.7%. The growth in the forecast period can be attributed to increasing adoption of digital investment platforms, growing demand for esg and sustainable investment products, expansion of active and smart beta etfs, rising cross-border investment flows, increasing institutional allocation to etfs. Major trends in the forecast period include growing adoption of thematic and smart beta etfs, rising demand for low-cost passive investment products, expansion of esg-focused exchange traded funds, increasing retail investor participation in etfs, enhanced liquidity and transparency in etf trading.

The increasing total asset management is anticipated to drive the growth of the exchange-traded fund market in the coming years. Asset management involves the professional oversight of investments on behalf of clients. The complexity of assets contributes to the expansion of asset management, the need for enhanced risk management, and the pursuit of higher investment returns. ETFs support asset management by offering diversification, ease of trading, lower costs, and improved portfolio and investment strategies. For example, in December 2023, according to the Monetary Authority of Singapore, a Singapore-based central bank, global assets under management (AUM) grew by 12% in 2023, while Asia’s AUM also rose, though more moderately, by 8%, driven by gains in global bonds and equities following a challenging 2022. Singapore’s AUM increased by 10% to S$5.4 trillion (US$4.1 trillion), surpassing the overall growth in Asia. Consequently, the rise in total asset management is fueling the expansion of the exchange-traded fund market.

Leading companies in the ETF market are focusing on innovative offerings tailored to emerging market trends, such as electric vehicles (EVs) and new-age automotive sectors, to meet growing demand for sustainable investment options. ETFs focused on EVs aim to generate long-term capital appreciation by investing in companies leading the transformation of the automotive industry and its associated value chain. For instance, in June 2024, Mirae Asset Financial Group introduced India's first ETF dedicated to electric vehicles and new-age automotive segments, named the Mirae Asset Nifty EV and New Age Automotive ETF. This open-ended scheme tracks the Nifty EV and New Age Automotive Total Return Index, catering to investor interest in sustainable and forward-looking investment opportunities.

In January 2024, Amplify ETFs, a US-based investment company, acquired ETF assets from ETF Managers Group (ETFMG) for an undisclosed sum. This acquisition is expected to substantially expand Amplify's range of investor solutions and product offerings within its ETF segment portfolio. ETF Managers Group (ETFMG), also based in the US, specializes in providing exchange-traded funds tailored for investors.

Major companies operating in the exchange traded fund market are JPMorgan Chase & Co., Bank of America, Wells Fargo & Company, BNP Paribas SA, Morgan Stanley, The Goldman Sachs Group Inc., UBS Group AG, Barclays PLC, The Charles Schwab Corp., BlackRock Inc., State Street Corporation, The Vanguard Group Inc., Invesco Ltd., Morningstar Inc., Abrdn plc, BMO Global Asset Management, Virtus Investment Partners, Victory Capital, WisdomTree Inc., Tata Mutual Fund, VanEck.

North America was the largest region in the exchange traded fund market in 2025. The regions covered in the exchange traded fund market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the exchange traded fund market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The exchange-traded fund market includes revenues earned by entities through management fees, administrative costs, custodian fees, and legal fees. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.