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The Growth of ETFs: ICI's December 2025 Report

The Exchange-Traded Fund (ETF) market witnessed remarkable growth during December 2025, according to the latest report from the Investment Company Institute (ICI). The total assets under management for ETFs reached a staggering $13.37 trillion, reflecting a substantial increase of $206.7 billion or approximately 1.6% from November 2025. This rise in assets over the past year has been nothing short of phenomenal, with an overall growth of $3.07 trillion, indicating an impressive 29.8% increase year-over-year.

Asset Breakdown: Dominance of Domestic Equity

The assets of domestic equity ETFs were a significant contributor to this growth. In December 2025, the total assets for domestic equity ETFs climbed to $8.61 trillion, a notable increase from $6.89 trillion just a year prior. Specifically, the subsections of domestic ETFs provided insight into investor preferences:

• - Broad-Based Domestic ETFs: $7.65 trillion, up from $6.07 trillion in December 2024.
• - Sector/Industry Domestic ETFs: $964.5 billion, showing growth from $814.7 billion a year ago.

Furthermore, global and international equity ETFs also reported positive trends, with assets increasing to $2.13 trillion, reflecting a 46.9% rise compared to the previous year’s figures.

Bond and Commodity ETFs

In addition to equity funds, bond ETFs reached assets totaling $2.24 trillion, while hybrid funds saw a slight decrease to $48.3 billion. Commodity ETFs also experienced growth, accumulating $341.9 billion in assets. These figures underscore the growing trend of diversification within the ETF marketplace, as more investors seek various asset classes to balance their portfolios.

Net Issuance Trends

A key indicator of market health is the issuance and redemption of ETF shares. In December 2025, gross issuance of ETF shares totaled $847.9 billion, significantly outpacing gross redemptions of $618.6 billion, leading to a positive net issuance of $229.3 billion. This figure suggests that investor confidence in ETFs remains robust, as more capital is flowing into these funds rather than being withdrawn. For comparison, the net issuance by the end of December 2024 stood at $145.3 billion.

Increased ETF Options

The number of ETFs in the marketplace also reflects growing investor interest and options. As of December 2025, there were 4,490 ETFs available, up from 3,641 a year earlier. This suggests an appetite for a diverse range of investment options, catering to varying investor strategies and needs.

Conclusion

The significant rise in ETF assets and ongoing net issuance demonstrates a strong investor focus on this type of investment vehicle. With increasing numbers of funds available, the ETF market is expanding to meet investor demand in both domestic and international markets. As the financial landscape continues to evolve, monitoring these trends will be crucial for investors looking to optimize their portfolios for future growth.

For further queries regarding the data or for additional insights, the ICI Media Relations team can be contacted at [email protected]