This year proved to be the year of exchange-traded funds, according to Fidelity International, as net inflows reached an all-time high.
Net inflows hit $372 billion in 2025, up 32% on 2024’s record-setting year.
Neil Davies, head of ETF product and capital markets, Europe and APAC at Fidelity International, said: “There are three fundamental reasons behind the success of ETFs: cost efficiency, easy market access, and regulatory security. If these three drivers remain, ETFs will continue to dominate.”
Fidelity’s report found ETF growth has been remarkably balanced across asset classes and regions. Since 2013, the ratio of inflows into equities versus bonds has remained stable at about 70% to 20%, with the remaining 10 spread across commodity, crypto, or multi-asset ETFs. Regional distribution shows a similar pattern, Fidelity said. In equities, around 40% of new money flows into the US, 30% into globally diversified products, 20% into Europe and 7% into emerging markets.
Davies said: “The market volume keeps rising, but new inflows remain proportional. This stands out considering US equities have consistently led the market. ETF inflows are primarily driven by long-term allocation models, rather than short-term performance. New money doesn’t necessarily change portfolio weighting because allocations are made proportionally.”
Following the broader ETF market growth, active ETFs also reached record levels in 2025, with net inflows of over $31 billion. Investors allocated around two-thirds more into active ETFs than last year, meaning 8.5% of total new inflows went into active ETFs, up from 6.3% in 2024 and 3.9% in 2023.
“These figures highlight the strong momentum in active ETF growth, with growth increasing every year and clients bringing together the traditional benefits of the ETF wrapper with alpha generation. Active ETFs are no longer a niche phenomenon,” Davies added.
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