US ETF assets under management to more than double to $25 trillion by 2030, Citigroup says

Assets under management for U.S. exchange-traded funds could more ​than double to $25 trillion ​by the end of this decade, Citigroup said on ​Thursday, as investors seek the increasingly popular asset class for low-cost, diversified exposure across markets.

As of March 2025, the U.S.-listed ETF industry's total assets stood at about $10.4 trillion, according ‌to Citi.

The ⁠Wall Street ⁠brokerage had previously forecast the industry's AUM to hit $19 trillion by 2030 and $29 ​trillion by 2035.


It now expects more than $40 trillion by 2035.

"While these projections are more ​optimistic than our prior estimates, it still suggests ETFs will be in a more mature phase of AUM growth as flows (organic) and performance (inorganic) drivers will ​be more balanced than the previous ten ⁠years," Citi said.

A ‌large chunk of the growth could be driven ​by active ​ETFs, investments into which are expected to outpace their ⁠passive peers, the brokerage said.

Active ETFs are among the fastest-growing ​segments of the ETF market, attracting investors with flexible ​strategies and lower costs. Many aim to outperform a benchmark or deliver a specific investment outcome, while passive ETFs seek to track an index and mirror its performance.

"Our base case expects Active's market share of ETF AUM to double in ten years as these products gain (a) ‌greater share of industry flows," Citi said in a note on Thursday.

Other factors supporting growth within the industry include product ​innovation, easier ETF ​launch regulation, adoption ⁠of more sophisticated strategies, and demand for flexible, tax-efficient investment solutions, Citigroup said.

ETFs tracking U.S. equities have recorded more than $75.8 billion in inflows so far this ​year, building on more than $1.1 trillion worth of inflows seen in the last two years, according to data from LSEG Lipper.

Meanwhile, U.S.-domiciled ETFs have recorded more than $435 billion worth of inflows so far this year, as per LSEG Lipper data.