ETFs Saw a Record $1.5 Trillion in Net Inflows in 2025

• U.S. growth ETFs dramatically outpaced value ETFs with $134 billion in inflows versus $73 billion, marking the largest gap on record despite concentration risk concerns
• Bond ETFs attracted nearly $500 billion for the year, with active bond ETFs contributing $178 billion of those inflows
• Stocks, bonds, and commodities delivered their strongest combined performance since 2019, returning 21%, 8%, and 16% respectively

Summary: Record $1.5 Trillion Flows into ETFs in 2025

The ETF industry achieved record-breaking net inflows of $1.5 trillion in 2025, according to State Street Investment Management research led by Matt Bartolini. December alone contributed $235 billion, pushing Q4 flows to $564 billion—representing over one-third of annual inflows.

Key Performance Metrics

The strong flows rewarded robust asset performance across categories:

• Equities: 21% returns
• Bonds: 8% returns
• Commodities: 16% returns

This marked the strongest combined performance since 2019 for these asset classes.

Sector Breakdown

Equity ETFs dominated with $390 billion in Q4 inflows alone. A notable trend emerged in the growth versus value divide:

• U.S. growth ETFs attracted $134 billion
• U.S. value ETFs received $73 billion
• The gap represents the largest on record, despite concerns about market concentration

Fixed Income ETFs captured nearly $500 billion in annual inflows, with active bond ETFs contributing significantly at $178 billion. Even inflation-linked bond ETFs turned positive, partly driven by gold ETF demand.

Market Implications

The data reveals several key insights:

1. Growth stocks maintained dominance despite negative headlines and concentration concerns
2. The ETF industry continues accelerating growth momentum following the 2019 ETF Rule implementation
3. Active management strategies are gaining traction, particularly in fixed income
4. ETFs are increasingly becoming the preferred investment vehicle over traditional mutual funds

The record-setting year positions ETFs for continued expansion in 2026, reflecting their growing role in portfolio construction and investment strategy execution.