Global ETF Industry Sees Record New Launches in H1 2025

Yahoo

2 days ago

As of the end of June, 1,308 new exchange-traded funds hit the global market in 2025 compared to just 878 during the same period last year, according to data from independent research and consultancy firm ETFGI. The record number exhibits just how appealing the low-cost, convenient wrapper is to investors.
There were 266 closures of ETFs during the first half of 2025, resulting in a net increase of 1,042 ETFs.
'The rapid proliferation of new ETFs is a response to evolving investor preferences for cost-effective, transparent and flexible investment vehicles, coupled with ongoing innovation by asset managers to meet diverse investment needs and capitalize on market trends,' Deborah Fuhr, managing partner and founder of ETFGI, told etf.com. 'The ETF market is highly competitive, and launching new products is a key strategy for providers to gain market share and attract inflows.'
Global ETFs by the Numbers; iShares Leads
So far in 2025, the United States has led the way in new ETF launches, with 481 new ETFs introduced, compared to 296 during the first half of last year and 205 during the first half of 2023. The Asia Pacific region (excluding Japan) came next with 399 new ETFs so far this year, while Europe had 198.
BlackRock Inc.'s (BLK) iShares was responsible for 42 of the 1,308 new ETFs, followed by Global X with 36 launches and First Trust with 27. A total of 326 different providers debuted new ETFs during the first half of the year.
The global ETF market also reached a record high in terms of assets invested, with $17 trillion at the end of June, surpassing the previous record of $16.3 trillion set in May. Year-to-date inflows totaled $897.7 billion, ETFGI found—another record high.
Why ETF Issuance Is Surging
Fuhr said there has been a surge in actively managed ETFs and that providers are launching thematic ETFs, such as those focused on industries like artificial intelligence or clean energy.
Innovation in ETF structures, including those that use derivatives or provide exposure to digital assets, such as spot Bitcoin ETFs like the iShares Bitcoin Trust (IBIT), is expanding the range of options available, and funds that focus on specific factors like value, quality, momentum, size or minimum volatility are also gaining traction.
She said asset managers are adapting to a noticeable shift in investor preference from mutual funds to ETFs by launching ETF versions of their existing mutual fund strategies, and a supportive regulatory environment in various regions is facilitating the growth and innovation within the ETF market.