It’s October, and ETFs are closing in on the $1 trillion mark for net inflows in 2025 (We have $997 billion as of October 9). This is a monumental achievement given this milestone was first crossed in a calendar year only last December. Unlike seeing Christmas decorations two months early, for me, this is a welcome treat.
ETFs have become a go-to vehicle for investors seeking access to equity and fixed income markets. Meanwhile, in 2025, demand has been picking up for alternatives such as cryptocurrency and gold. Both retail and institutional investors, including professional managers, are increasingly embracing ETFs.
VOO Leads the Inflow Race But Other S&P 500 ETFs Running Fast
In 2024, the Vanguard S&P 500 ETF (VOO) was the first ETF to surpass $100 billion, adding $116 billion. With $90 billion added as of October 9, it seems likely that VOO will cross that threshold again. However, it is not alone in providing low-cost S&P 500 Index exposure.
The iShares Core S&P 500 ETF (IVV) and the SPDR Portfolio S&P 500 ETF (SPLG) have added $34 billion and $26 billion, respectively, thus far in 2025. Many advisors and investors have continued to use S&P 500 ETFs as building blocks for portfolios. After a volatile first quarter, these ETFs have delivered a total return of 16% thus far in 2025.
Turning to Active Management for Income or Returns
While some investors are seeking to replicate the broader market, others in 2025 have sought to do even better. Actively managed equity ETFs such as the iShares U.S. Equity Factor Rotation ETF (DYNF) and the JPMorgan NASDAQ Equity Premium ETF (JEPQ) have been two of the beneficiaries.
DYNF added $11 billion this year and seeks to outperform the broader market through bottom-up security selections. Meanwhile, JEPQ, which has gathered $9.2 billion, sports a 9.5% yield due to its use of covered calls.
Seeking out Alternatives to Stock Exposure
Despite a strong stock market in 2025, ETF investors have also diversified into non-equity styles. Gold, bitcoin and fixed income ETFs have been in demand as they provide diversification benefits.
The iShares 0-3 Month Treasury Bond ETF (SGOV) pulled in $29 billion. This cash alternative offered a 4% yield to those looking for a safe haven. As its name suggests, SGOV holds only Treasury bonds and has minimal interest rate sensitivity.
ETF investors have also turned to alternatives to equity and fixed income, particularly bitcoin and gold. The recently launched iShares Bitcoin Trust (IBIT) and the veteran SPDR Gold Shares (GLD) added $28 billion and $15 billion, respectively. While some people consider these competing products, there are others that can find room for both in an ETF portfolio.
A Rising ETF Tide Does Not Lift All Boats
In total, there were 16 ETFs that had gathered more than $10 billion of new money in 2025. Several dozen others crossed the $1 billion mark. We believe ETFs have gained market share from mutual funds and know they have been a replacement for direct market exposure. However, not all ETFs have pulled in fresh assets.
The SPDR S&P 500 ETF (SPY), the iShares Russell 2000 ETF (IWM), the iShares MSCI EAFE Growth ETF (EFG), the Energy Select Sector SPDR ETF (XLE), and the Pacer US Cash Cows 100 ETF (CALF) all had net outflows of more than $6 billion.
My VettaFi colleague Cinthia Murphy and I recently sat down to discuss the strong recent achievements in the ETF industry. I only wish we had champagne to toast the ETF-minded investment community for adding nearly $1 billion this year. Here’s to a second $1 trillion year for the US ETF industry.
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