As the number of exchange-traded funds around the world exploded over the past decade, active strategies saw a boom in North America even as the region remains cool on ESG investments, according to a new report.
The fifth annual global ETF survey report from TrackInsight – prepared in collaboration with J.P. Morgan Asset Management and State Street – drew on insights from more than 500 investment professionals who collectively manage ETF assets north of $900 billion, as well as its database of over 10,000 exchange-traded products.
According to the report, the market boasted nearly 8,990 ETFs as of the end of 2023, with North America claiming a dominant 51.1% share. That came alongside a leap in assets under management to $11 trillion globally, with North American ETF assets jumping from $2.02 trillion in 2014 to $8.43 trillion today.
The report highlighted the recent surge in active ETF strategies, particularly in North America – which accounted for 25% of the 2023 inflows – to push total active assets in the region to a record $630 billion. Adoption of active ETFs has been comparatively sluggish in Europe, according to the report, with only $32 billion in assets accumulated across the pond.
While excitement in thematic investments has cooled off from pandemic-era peaks, specific themes like AI, robotics, and automation continue to attract significant interest, especially in the US and Europe. TrackInsight highlighted Europe's steadfast commitment to climate change and net-zero goals, with over $10 billion being funneled into related ETFs last year.
An intriguing cross-Atlantic polarity also emerged in the ESG sector, with Europe injecting a $50 billion into ESG ETFs to command a 75% share of global ESG ETF assets. In contrast, the U.S. has witnessed a significant decrease in net flows, which was attributed to political pushback.
Global interest in cryptocurrency ETPs also saw a revival, the report said, spurred by anticipation of the SEC's approval of spot bitcoin ETFs. This shift has seen North America and Europe collectively attracting more than $2.5 billion in investment, indicating a potential end to the crypto winter.
And as rate hikes by central banks helped push bond yields up, global fixed-income ETF assets reached the $2 trillion mark. Investors expressed a renewed appetite for fixed income by plowing $287 billion into the space, with North American fixed-income ETFs taking in $220 billion.
"This year's Global ETF Survey underscores the vibrant expansion and the transformative potential of the ETF industry,” Philippe Malaise, CEO of TrackInsight, said in a statement. “The findings highlight the adaptability of ETFs to market changes and investor needs, reinforcing their essential role in contemporary investment strategies."
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
